UNIFORM  CLASSIFICATION  OF  ACCOUNTS 


ELECTRIC  CORPORATIONS 


A  -  PRESCRIBED  BY  THE 

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RAILROAD  COMMISSION 


STATE  OF  CALIFORNIA 


Adopted  Octv/ier  23,  1912.      Effective  January  1,  1913 


SAN  FRANCISCO,  CALIFORNIA 


CALIFORNIA 

STATE  PRINTING  OFFICE 
1915 


RAILROAD  COMMISSION  Of  CALIFORNIA. 


JOHN  M.   ESHLEMAN,  President Commissioner 

H.   D.   LOVELAND Commissioner 

ALEXANDER  GORDON Commissioner 

EDWIN  O.   EDGERTON Commissioner 

MAX  THELEN,   Attorney Commissioner 


UNIfORM  CLASSIHCATION  Of  ACCOUNTS  fOR  ElECTRIC 
CORPORATIONS. 


Approved    October   23,    1912. 

To  All  Electrical  Corporations: 

This  uniform  system  of  accounts  for  electrical  corporations  is  estab- 
lished and  issued  by  the  Railroad  Commission  of  the  State  of  California 
in  accordance  with  provisions  of  section  48  of  Laws  of  1911,  known  as 
the  "Public  Utilities  Act,"  in  effect  March  23,  1912. 

Section  48.  ' '  The  Commission  shall  have  power  to  establish  a  system 
of  accounts  to  be  kept  by  the  public  utilities  subject  to  its  jurisdiction, 
or  to  classify  said  public  utilities  and  to  establish  a  system  of  accounts 
for  each  class,  and  to  prescribe  the  manner  in  which  such  accounts  shall 
be  kept.  It  may  also  in  its  discretion  prescribe  the  forms  of  accounts, 
records  and  memoranda  to  be  kept  by  such  public  utilities,  including 
the  accounts,  records  and  memoranda  of  the  movement  of  traffic  as  well 
as  the  receipts  and  expenditures  of  moneys,  and  any  other  forms, 
records  and  memoranda  which  in  the  judgment  of  the  Commission  may 
be  necessary  to  carry  out  any  of  the  provisions  of  this  act.  The  system 
of  accounts  established  by  the  Commission  and  the  forms  of  accounts, 
records  and  memoranda  prescribed  by  it  shall  not  be  inconsistent,  in 
the  case  of  corporations  subject  to  the  provisions  of  the  act  of  congress 
entitled  'An  act  to  regulate  commerce,'  approved  February  fourth, 
eighteen  hundred  and  eighty-seven,  and  the  acts  amendatory  thereof 
and  supplementary  thereto,  with  the  systems  and  forms  from  time  to 
time  established  for  such  corporations  by  the  Interstate  Commerce  Com- 
mission, but  nothing  herein  contained  shall  affect  the  power  of  the 
Commission  to  prescribe  forms  of  accounts,  records  and  memoranda 
covering  information  in  addition  to  that  required  by  the  Interstate 
Commerce  Commission.  The  Commission  may,  after  hearing  had  upon 
its  own  motion  or  upon  complaint,  prescribe  by  order  the  accounts  in 
which  particular  outlays  and  receipts  shall  be  entered,  charged  or 
credited.  "Where  the  Commission  has  prescribed  the  forms  of  accounts, 
records  or  memoranda  to  be  kept  by  any  public  utility  for  any  of  its 
business,  it  shall  thereafter  be  unlawful  for  such  public  utility  to  keep 
any  accounts,  records  or  memoranda  for  such  business  other  than  those 
so  prescribed,  or  those  prescribed  by  or  under  the  authority  of  any  other 
state  or  of  the  United  States,  excepting  such  accounts,  records  or  memo- 
randa as  shall  be  explanatory  of  and  supplemental  to  the  accounts, 
records  or  memoranda  prescribed  by  the  Commission." 


4  CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATION*. 

Section  1.  (r)  "The  term  'electrical  corporation,'  when  used  in 
this  act,  includes  every  corporation  or  person,  their  lessees,  trustees, 
receivers  or  trustees  appointed  by  any  court  whatsoever,  owning,  con- 
trolling, operating  or  managing  any  electric  plant  for  compensation 
within  this  state,  except  where  electricity  is  generated  on  or  distributed 
by  the  producer  through  private  property  alone,  solely  for  his  own  use 
or  the  use  of  his  tenants,  and  not  for  sale  to  others. ' ' 

For  the  purpose  of  this  system  of  accounts,  electrical  corporations  are 
divided  into  three  classes  as  follows: 

Class  A — Corporations  having  average  annual  operating  reve- 
nues exceeding  $100,000. 

Class  B — Corporations  having  average  annual  operating  reve- 
nues less  than  $100,000,  and  more  than  $25,000. 

Class  C — Corporations  having  average  annual  operating  reve- 
nues less  than  $25,000. 

Any  corporation  in  Classes  B  and  C  may  keep  the  more  extended 
division  or  subdivision  of  any  or  all  the  accounts  shown  herein :  if 
desired,  further  refinements  or  extensions  of  the  scheme  of  accounts  to 
meet  the  needs  of  individual  corporations  may  be  made  by  subdividing 
the  accounts  herein  established,  provided  that  the  integrity  of  the 
accounts  is  not  impaired  and  that  the  titles  and  purposes  of  any 
accounts  so  raised  shall  first  be  filed  with  the  Kailroad  Commission. 

All  accounts  shall  be  kept  by  the  double  entry  method  by  all  corpora- 
tions or  persons  within  the  scope  of  this  order.  This  requirement, 
however,  is  not  intended  to  apply  to  purely  statistical  accounts. 

The  first  entry  relating  to  anything  for  which  a  charge  or  a  credit 
is  made  to  any  fixed  capital  or  investment  account  shall  describe  the 
property  in  respect  of  which  the  entry  is  made  with  such  fullness  and 
particularity  as  to  enable  its  identification. 

All  charges  made  to  fixed  capital  or  other  property  account  with 
respect  to  any  property  acquired  on  or  after  January  1,  1913.  shall  be 
the  actual  money  costs  of  the  property.  When  the  consideration  given 
and  for  which  a  charge  is  made  to  any  fixed  capital  or  other  property 
account  is  anything  other  than  money,  the  actual  consideration  shall  l>e 
fully  described  in  the  entry,  to  enable  identification,  and  the  amount 
charged  shall  be  the  actual  money  value  of  the  consideration  at  the  time 
of  the  transaction. 

Discounts  upon  securities  and  other  commercial  papers  issued  are  to 
be  provided  for  in  other  accounts  and  must  in  no  case  be  included  as 
part  of  the  cost  of  any  property  acquired. 

The  figures  and  letters  prefixed  to  the  titles  of  accounts  in  the  follow- 
ing definitions  and  instructions  are  solely  for  convenience  of  reference, 
mid  a  IT  not  to  be  considered  as  part  of  the  title  or  definition. 


CLASSIFICATION  <»K  ACCOCXTS.  ELECTRIC  CORPORATIONS.  .) 

All  corpora  I  ions  an-  hereby  required  on  and  after  January  1,  1913. 
to  keep  their  accounts  in  accordance  with  classifications  herein  provided. 

All  corporations  operating  in  more  than  one  incorporated  city  or 
partly  within  and  partly  without  an  incorporated  city,  shall  show  sepa- 
rate income  account  for  each  incorporated  city,  and  a  single  income 
account  for  all  territory  not  within  an  incorporated  city. 

All  general  expense  common  to  the  entire  system,  together  with  the 
expense  and  repairs  of  the  production,  transmission  and  distribution 
systems,  shall  be  treated  as  common  to  the  entire  system  and  prorated 
to  the  several  incorporated  cities  or  other  territory  on  some  equitable 
basis  in  accordance  with  the  benefits  derived. 

NOTE. — Corporations  will  file  with  the  Commission  a  statement  in  complete  detail 
and  full  explanation  supporting  the  basis  on  which  a  prorate  of  expenses  is  made. 

In  prescribing  this  system  of  accounts,  the  Commission  does  not.  bind 
itself  to  approve  any  item  set  out  in  any  account,  either  as  to  amount 
or  character,  for  rate  fixing  purposes  or  when  authorizing  the  issuance 
of  securities.  The  prescribed  system  of  accounts  is  designed  to  set  out 
the  facts  in  connection  with  the  income,  expenditures,  etc.,  and  there- 
from the  Commission  will  determine,  when  engaged  in  fixing  rates  or 
approving  issues  of  securities,  just  what  consideration  shall  be  given  to 
the  various  items  in  the  several  accounts. 

RAILROAD  COMMISSION  OF  THE  STATE  OF 
CALIFORNIA. 

BY  CHARLES  R.  DETRICK,  Secretary. 
Dated:  October  24,  1912. 
Commercial  Building, 

Sun  Fr<iii<-is(.-o,  California. 


2— E 


6  CLASSIFICATION'   OF   ACCOTXTS.   KI.KCTRIC   CORPORATIONS. 

BALANCE    SHEET    ACCOUNTS. 
Definitions   and    Instructions. 

Balance  sheet  accounts  defined.  By  balance  sheet  accounts  are 
meant  those  titles  under  which  the  ledger  accounts  are  combined  and 
summarized  to  show  the  assets,  liabilities,  and  profit  or  loss  of  the 
business  at  a  given  time.  Where  the  title  and  definition  of  a  balance 
sheet  account  clearly  indicate  that  it  is  a  summary  of  other  accounts, 
it  is  not  required  that  a  special  ledger  account  shall  be  raised  under 
such  a  title  to  include  the  balance  from  the  accounts  usually  carried  on 
the  ledger. 

Assets.  The  term  Assets  is  an  accepted  designation  of  the  wealth 
or  money's  worth,  either  actual  or  nominal,  in  the  possession  or  control, 
or  at  the  disposal  of  individuals,  firms,  corporations,  or  governments, 
when  tin1  wealth  or  money's  worth  is  considered  as  resources  for 
satisfying  the  obligation  of  debtors  to  creditors,  and  those  of  trustees 
to  their  principals;  and  as  a  basis  of  the  property  rights  of  owners 
or  stockholders,  or  as  resources  classified  according  to  their  character, 
their  relation  to  the  principal  purpose  of  the  business  or  enterprise  in 
Which  they  are  utilized,  their  form,  or  the  time  when  and  conditions 
under  which  they  become  owned  or  controlled  by  or  at  the  disposal  of 
the  individual,  firm,  corporation  or  government  utilizing  or  disposing 
of  them. 

Corporate  deficit  is  the  excess  of  the  expense  and  deductions  over 
revenue  or  income,  and  represents  the  amount  due  to  the  corporation 
by  its  proprietors,  or  proprietary  interests,  for  the  replacement  of  lost 
invested  capital. 

Liabilities.  Liabilities  are  primarily  amounts  of  money  or  quantities 
of  other  specified  forms  of  wealth  which  persons,  firms,  corporations, 
or  governments  are  under  obligation  to  pay  or  deliver,  or  for  whose 
custody,  use,  payment,  or  expenditure  they  are  responsible,  or  amounts 
representing  losses  or  depreciation  of  assets  incurred  but  not  realized. 

Corporate  surplus  is  the  excess  of  revenue  or  income  over  expenses 
and  deductions,  or  portions  of  the  property  rights  or  equity  of  the 
proprietors. 

ASSET  ACCOUNTS. 
1.  FIXED  CAPITAL  INSTALLED  PRIOR  TO  JANUARY  1,  1913 : 

In  this  account  (on  the  balance  sheet  statement)  shall  be  shown  the 
total  of  the  balance  in  the  ledger  accounts  representing  the  corpora- 
tion's fixed  capital  which  was  installed  prior  to  January  1.  1918.  and 
which  is  still  in  service  at  date  of  the  balance  sheet.  (See  text  of  this 
account  under  Account  C-35,  "Fixed  Capital  Accounts.") 


CLASSIFICATION  OF  ACcor.VTS.  ELECTRIC  CORPORATIONS.  / 

2.   FIXKD  CAPITAL   INSTALLFD  SINCE  DFCF.MP.KK  :',1,  1912: 

This  acccimt  is  ;i  summary  of  1  he  accounts  representing  the  corpora- 
1  ion's  fixed  capital  installed  since  December  :i1.  1!)12,  and  sbonld  show 
the  cost  of  the  fixed  capital  which  h;is  been  installed  since  that  date 
and  is  still  in  service  at  the  date  of  the  balance  sheet.  (For  primary 
fixed  capital  accounts  see  Accounts  C-l  to  C-4,  "Intangible  Capital," 
and  Accounts  C-f>  to  C-35,  "Tangible  Capital  Accounts.") 

.'3.  CASH  AND  DEPOSITS  : 

A.  Cash.     Charge  to  this  account  the  amount  of  current  funds  avail- 
able for  use  on  demand  in  the  hands  of  financial  officers  and  agents, 
or  deposited  in  banks  or  with  trust  companies,  and  cash  in  transit  for 
which  agents  receive  current  credit. 

B.  Special  Deposits.     Charge  to  this  account  special  deposits  to  pay 
declared  dividends  or  matured  interest,  cash  realized  from  the  sale  of 
securities   held    for   disbursement    when   the   purposes   for   which   the 
securities  are  sold  are  accomplished;  special  deposits  other  than  in 
sinking  funds  for  the  payment  of  debts  and  interest,  not  matured; 
also   money   and   securities   deposited   to   secure  the   performance   of 
contracts,   and  other  deposits  of  a  special  nature  not  provided  for 
elsewhere. 

4.  NOTES  RECEIVABLE  : 

Charge  to  this  account  the  cost  of  all  collectible  obligations  in  the 
form  of  notes  receivable  or  other  similar  evidences  of  money  receivable 
on  demand  or  within  a  time  not  exceeding  one  year.  This  does  not 
include  interest  coupons.  Time  loans  that  mature  more  than  one  year 
after  date  of  issue  shall  be  considered  as  investments  and  shall  not  be 
included  in  this  account. 

5.  ACCOUNTS  RECEIVABLE  : 

Include  in  this  account  all  amounts  owing  to  the  corporation  upon 
accounts  with  solvent  concerns  other  than  banks,  also  the  cost  of  all 
accounts  and  claims  (except  notes  or  negotiable  bills)  upon  which 
responsibility  is  acknowledged  by  solvent  concerns  or  which  are  suffi- 
ciently secured  to  be  considered  good,  and  of  all  judgments  against 
solvent  concerns  where  the  judgment  is  not  appealable  or  suspended 
through  appeal. 

The  following  sub-accounts  are  provided : 

A.  Accounts  with  System  Corporations.  Charge  to  this  account 
amounts  due  from  proprietary,  affiliated,  controlled,  and  controlling 
corporations  on  open  accounts  other  than  those  provided  for  in  Account 
No.  8-B,  "Advances  to  System  Corporations  for  Construction,  Equip- 
ment and  Betterments." 


8  CI. ASSIFICATIDX   OK   ACCorXTS.   El 

1>.  Dti<  front  Co/isi.nx  rx  and  A<f<  at*.  Charge  to  this  account 
amounts  due  from  consumers  and  agents  for  service^  rendered  or  billed. 

NOTE. — Accounts  with  consumers  and  agents  shall  be  kept  in  such   manner  as  will 
enable    corporations   to    show    amounts    due    from    consumers   and    agents    for    current 
accounts,    tor   delinquent    accounts,    and    amounts   due   from    consumers    v, 
has  been   suspended. 

C.  Miscellaneous  Accounts  Receivable.  Charge  to  this  account 
amounts  due  from  employees  for  working  funds  advanced,  and  amounts 
due  from  miscellaneous  debtors  upon  open  accounts  considered 
collectible. 

6.  INTEREST  AND  DIVIDENDS  RECEIVABLE  : 

Charge  to  this  account  all  interest  considered  collectible  accrued  but 
not  as  yet  collected  upon  bonds,  notes  or  other  commercial  paper,  held 
by  or  for  the  benefit  of  the  corporation;  all  dividends  declared  or  guar- 
anteed by  solvent  concerns  but  not  yet  collected,  the  right  to  which  is 
in  the  corporation. 

7.  OTHER  CURRENT  ASSETS: 

Charge  to  this  account  the  cost  of  all  current  assets  which  are  not 
includible  under  any  of  the  foregoing  accounts.     By  Current  As 
are  meant  only  those  things  that  are  readily  convertible  into  money 
and  which  are  held  not  as  investments,  but  with  the  intent  of  being 
presently  converted  into  money. 

8.  INVESTMENTS: 

This  account  includes  the  cost  of  all  properties  acquired  or  held  not 
for  use  in  present  operations,  but  as  a  means  of  obtaining  and  exer- 
cising control  over  other  corporations,  or  for  income  to  be  derived  from 
them,  or  for  a  rise  in  value,  or  for  devotion  to  future  operations,  and 
for  securing  other  business  advantages  that  may  seem  possible  through 
their  acquisition  and  possession. 
It  is  subdivided  as  follows : 

A.  Securities  of  Other  Corporations.  Charge  to  this  account  the 
cost  of  stocks  and  bonds  and  other  evidences  of  indebtedness  issued  by 
other  companies.  This  account  does  not  include  any  stocks,  bonds,  or 
other  evidences  of  indebtedness  issued  or  assumed  by  the  accounting 
corporation.  Class  A  and  Class  B  corporations  will  subdivide  this 
account  so  as  to  show  separately  the  cost  of 

a.  Stocks  of  System  Corporations. 

&.  Funded  Debt  of  System  Corporations. 

r.  Miscellaneous  Stocks. 

d.  Miscellaneous  Bonds. 

XOTK. — In  the  annual  reports  to  the  Railroad  Commission,  investments  will  be 
required  to  be  classified  so  as  to  show  those  held  subject  to  a  lien  of  some  character 
and  those  held  free  of  all  lien  or  pledge. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

B.  Atb'tun-ix  ft,  Si/shm  Corporation*  for  Gonstrvtction,  Equipment 

and  Ii<  1t<  nn<  ntx.  Charge  to  this  account  advances  to  proprietary, 
affiliated,  controlled  and  controlling  corporations  to  enable  such 
corporations  to  pay  for  construction,  equipment,  additions,  and  better- 
ments, when  such  advances  are  of  a  permanent  nature  (i.  e.,  where 
there  is  not  an  understanding  that  the  advances  are  to  be  repaid  within 
one  year)  or  when  it  is  understood  and  intended  that  reimbursement 
shall  be  made  by  the  issue  of  the  securities  of  the  debtor  corporation. 

NOTE. — Temporary  advances  on  open  accounts  to  system  corporations  and  such 
advances  for  pui-poses  other  than  construction,  equipment,  additions  and  betterments 
shall  be  included  in  accounts  receivable. 

('.  MiscdlaiKon?;  Iiir< xfntt  nix.  Charge  to  this  account  all  other  in- 
vestments of  a  permanent  nature  in  intangible  and  in  physical  property 
not  held  for  the  operation  of  the  company's  plant  as  an  electric  system. 

NOTE. — In  the  annual  reports  to  the  Railroad  Commission,  investments  will  be 
required  to  be  classified  so  as  to  show  those  held  subject  to  a  lien  of  some  character 
and  those  held  free  of  all  lien  or  pledge. 

!).  MATERIALS  AND  SUPPLIES: 

Charge  to  this  account  the  cost  (including  transportation)  of  all 
materials  and  supplies  acquired,  and  the  value  of  discarded  equipment 
and  of  equipment,  materials,  and  supplies  returned  to  store,  regardless 
of  whether  the  same  are  intended  to  be  consumed  in  construction  or  in 
operation,  or  later  to  be  sold.  Where  discounts  recovered  through 
prompt  payment  are  not  credited  to  the  particular  bills,  the  cost  at 
which  such  materials  and  supplies  shall  be  charged  shall  be  the  invoice 
cost,  and  any  discounts  recovered  through  prompt  payment  of  bills  for 
such  materials  and  supplies  shall  be  credited  to  Account  No.  C-32, 
"Interest  During  Construction."  or  to  Account  No.  E-86,  "Undis- 
tributed Adjustments — Balance,"  according  as  such  materials  and  sup- 
plies are  intended  for  construction  or  for  operation. 

AVhen  the  use  of  any  tangible  fixed  capital  is  discontinued  it  shall  be 
treated  as  retired:  the  original  cost  of  such  capital  shall  be  credited  to 
the  fixed  capital  account  in  which  carried,  and  its  value,  if  any.  as 
second-hand  material  or  junk  shall  be. charged  to  this  account,  or  an 
appropriate  sub-account.  If  such  value  is  not  known  and  cannot 
readily  be  determined,  it  shall  be  estimated,  and  errors  in  such  esti- 
mates, when  determined,  shall  be  adjusted  through  the  accounts  in- 
volved during  the  year  in  which  the  estimates  were  made;  if  later,  then 
through  the  "Corporate  Surplus  or  Deficit"  account. 

Inventories  of  materials  and  supplies  shall  lie  taken  at  least  annually, 
and  any  shortages  or  overages  disclosed  by  such  inventories  shall  be 
credited  or  debited  to  this  account  and  debited  or  credited  to  Accounl 
No.  E-86,  "Undistributed  Adjustments — Balance."  or  to  Account 
No.  4.  "Supply  Expense"  (if  that  account  be  used),  in  case  such  short- 
ages or  overages  cannot  be  assigned  to  specific  accounts.  Shortages 


10  CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

may.  however,  be  charged  directly  to  "Corporate  Surplus  or  Deficit." 
Where  materials  and  supplies  from  stores  have  been  used  in  construc- 
tion, and  it  is  estimated  that  part  of  the  shortage  or  overage  is  due  to 
such  materials  and  supplies  having  been  actually  applied  to  construc- 
tion, a  proper  proportion  of  the  inventory  shortage  or  overage  should 
be  charged  or  credited  to  Account  No.  C-31-E,  "Miscellaneous  Con- 
struction Expenditures,"  directly  or  through  Account  No.  4,  "Supply 
Expense." 

10.  SINKING  FUNDS: 

Charge  to  this  account  the  amount  of  cash  and  the  cost  of  live  securi- 
ties in  the  hands  of  trustees  of  sinking  and  other  funds  for  the  purpose 
of  redeeming  outstanding  obligations,  also  amounts  deposited  with  such 
trustees  on  account  of  mortgaged  property  sold.  A  separate  account 
shall  be  raised  for  each  sinking  fund.  When  any  security  of  the  same 
issue  as  that  for  which  a  sinking  fund  is  created  is  acquired  through 
the  operation  of  the  sinking  fund,  the  par  value  of  the  security  shall  be 
charged  to  the  liability  account  to  which  it  stands  credited  and  not  to 
the  sinking  fund  account. 

11.  OTHER  SPECIAL  FUNDS: 

Charge  to  this  account  the  amount  of  cash  and  the  cost  of  securities 
held  in  trust  by  or  for  the  corporation  in  insurance  funds,  pension 
funds,  hospital  funds,  and  other  similar  special  funds  not  provided  for 
in  the  preceding  accounts.  A  separate  account  shall  be  raised  for  each 
fund. 

NOTE. — Securities  issued  or  assumed  by  the  corporation  may  be  included  among 
the  assets  of  special  funds  only  when  they  represent  the  actual  investment  of  funds 
held  in  trust  and  when  the  fund  so  held  would  share  in  the  distribution  of  assets 
covered  by  the  securities  in  case  of  foreclosure  or  dissolution. 

12.  TREASURY  SECURITIES: 

Charge  to  this  account  the  par  value  of  all  stocks  and  bonds  which 
have  been  authorized  and  issued  by  the  corporation  or  assumed  by  it 
and  held  by  the  Treasurer  or  other  fiscal  agent  of  the  corporation  for 
its  benefit.  When  such  securities  are  sold  their  par  value  shall  be 
credited  to  this  account. 

13.  PREPAID  EXPENSES: 

A.  Prepaid  Rents.     Charge  to  this  account  the  amount  of  rents  paid 
in  advance  of  the  enjoyment  of  the  term.     As  the  term  is  consumed, 
credit  this  account  at  monthly  intervals  and  debit  the  appropriate  rent 
account  with  the  amount  applicable  to  the  month. 

B.  Prepaid  Ta.rt*.     Charge  to  this  account   the  excess  of  taxes  p;iid 
over  the  amount  properly  chargeable  to  Income  or  other  accounts  as 
shown  by  the  debit  balance  in  the  Tax  Liability  account. 


CLASSIFICATION"  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  11 

C.  Prepaid  Insurance.     When  premiums  on  insurance  policies  are 
paid  in  advance  of  their  accrual,  the  amount  prepaid  shall  be  charged 
to  this  account.     As  such  premiums  accrue,  they  shall  be  credited  at 
monthly  intervals  to  this  account  and  charged  to  the  appropriate  ex- 
pense account. 

D.  Of  In  r  J'rffxiijnn  at*.     When  prepayments  are  made  for  anything 
other  than  as  provided  for  in  the  three  preceding  accounts,  the  amount 
of  such  prepayments  shall  be  included  in  this  account. 

14.  UXAMORTIZED  DISCOUNT  ON  SECURITIES  AND  EXPENSE:      . 

When  capital  stock,  funded  debt  securities  and  other  evidences  of 
indebtedness  are  disposed  of  for  a  consideration  whose  cash  value  is 
less  than  the  sum  of  the  par  value  of  the  securities  or  other  evidences 
of  indebtedness  and  the  interest  thereon  accrued  at  the  time  the  trans- 
fer takes  place,  the  excess  of  such  sum  of  the  par  value  and  accrued 
interest  over  the  cash  value  of  the  consideration  received  shall  be 
charged  to  this  account,  To  this  account  shall  also  be  charged  all 
expense  connected  with  the  issue  and  sale  of  evidences  of  debt,  such 
as  fees  for  drafting  mortgages  and  trust  deeds,  fees  and  taxes  for 
recording  mortgages  and  trust  deeds;  cost  of  engraving  and  printing 
bonds,  certificates  of  indebtedness,  and  other  commercial  paper  having 
a  life  of  more  than  one  year ;  fees  paid  trustees,  provided  for  in  mort- 
gages and  trust  deeds;  fees  and  commissions  paid  underwriters  and 
brokers  for  marketing  such  evidences  of  debt,  and  other  like  expense. 
At  or  before  the  close  of  each  fiscal  period  thereafter,  a  proportion  of 
such  discount  and  expense  on  securities  representing  indebtedness 
based  upon  the  life  of  the  security  to  maturity  shall  be  credited  to  this 
account  and  charged  to  Account  No.  109,  ''Amortization  of  Debt  Dis- 
count and  Expense."  Such  discount  and  expense  may,  if  desired,  be 
amortized  more  rapidly  through  charges  of  all  or  any  part  of  it,  either 
at  the  time  of  issue  or  later,  to  Account  No.  114-G,  "Other  Deductions 
from  Surplus." 

15.  OTHER  SUSPENSE: 

This  account  includes  all  debits  not  elsewhere  provided  for  and  the 
proper  final  disposition  of  which  is  uncertain.  It  will  include  all  such 
matters  as  expense  of  preliminary  surveys,  plans,  investigations,  etc., 
made  for  determining  the  feasibility  of  projects  under  contemplation. 
Should  any  such  project  later  be  carried  to  completion,  such  amounts 
shall  be  credited  to  this  account  and  charged  to  the  proper  capital 
account  <>r  accounts:  should  it  be  abandoned,  such  amounts  shall  be 
charged  to  ^Corporate.  Sin-plus  or  Deficit.'' 

When  the  proper  disposition  of  any  matter  charged  to  this  account 
is  determined,  it  shall  be  credited  to  this  account  and  charged  to  the 
appropriate  account  or  accounts. 


12  CLASSIFICATION  OF  ACOM'XTS.  FI.KCTKIC  ( •OKI'OHATIoXS. 

16.  CONSTRUCTION  WORK  IN  PROGRESS  : 

In  this  account  may  be  included  amounts  expended  upon  plant  that 
is  in  process  of  construction  under  estimates  or  work  orders  but  is  not 
ready  for  service  at  the  date  of  the  balance  sheet.  It  includes,  also, 
such  proportion  of  plant  supervision  expenses,  engineering  expenses, 
tool  expenses,  supply  expenses,  and  general  expenses  as  may  be  prop- 
erly chargeable  to  the  construction  work  included  under  this  account. 

When  the  work  is  completed  on  any  job.  the  cost  of  which  has  been 
included  in  this  account,  the  sub-account  covering  that  job  shall  be 
credited  with  the  amount  at  which  it  stands  charged,  and  the  appro- 
priate fixed  capital  or  other  accounts  shall  be  concurrently  charged; 
but  in  no  case  shall  any  expenditure  be  carried  in  this  account  beyond 
the  close  of  the  fiscal  year  next  succeeding  that  in  which  the  expendi- 
ture is  made. 

17.  CORPORATE  DEFICIT: 

Under  this  head  should  be  shown  the  debit  balance,  if  any.  in  the 
"Corporate  Surplus  or  Deficit  Account." 

LIABILITY   ACCOUNTS. 

18.  CAPITAL  STOCK: 

To  this  account  should  be  credited  the  par  value  of  the  capital  stock 
issued  and  outstanding,  including  any  that  may  be  in  the  corporation's 
treasury,  or  held  in  trust  for  it.  or  in  sinking  or  other  funds. 

19.  INSTALLMENTS  ON  STOCK  SUBSCRIPTION: 

To  this  account  should  be  credited  the  amounts  received  for  capital 
stock  to  be  paid  for  in  installments,  until  such  stock  is  issued. 

20.  FUNDED  DEBT  : 

The  funded  obligations  of  the  Corporation  shall  be  divided  into 
classes,  each  class  agreeing  in  all  of  the  following  four  characteristics: 

1.  Mortgage  or  other  lien,  or  security  therefor. 

2.  Rate  of  Interest. 

3.  Interest  Date. 

4.  Date  of  Maturity. 

A  separate  sub-account  shall  be  opened  for  each  mortgage  note,  or 
other  lien  or  security,  and  no  accounts  or  debts  net  agreeing  in  the 
characteristics  as  above  shall  be  included  in  the  same  sub-account. 

To  the  proper  sub-account  shall  be  credited  when  issued  the  total 
receipts  from  the  sale  of  evidence  of  indebtedness  secured  by  the  mort- 
gage, etc.  The  entry  in  any  account  shall  show  also  the  purpose  for 
which  funded  debt  is  issued  and  shall  make  intelligible  reference  to 
the  book,  page,  and  account  wherein  are  shown  any  discount  or  pre- 
mium realized  on  the  amount  issued  or  assumed. 


CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS.  13 

It'  the  consideration  received  for  the  indebtedness  is  other  than 
money,  the  entry  shall  show  to  whom  issued  and  shall  describe  with 
sufficient  particularity  to  identify  the  actual  consideration  received. 

If  the  issue  in  any  case  is  to  an  agent  of  an  undisclosed  principal, 
the  name  and  address  of  agent  and  the  fact  of  his  agency  must  be 
shown  in  the  entry:  also  short  time  securities  or  notes  and  mortuaLics 
payable  which  are  due  at  a  date  over  one  year  in  the  future. 

21.  RECKIVKR'S  CERTIFICATES: 

When  any  receiver  acting  under  the  orders  of  a  court  of  competent 
jurisdiction  is  in  possession  of  the  property  of  the  corporation,  and 
under  the  orders  of  such  court  issues  certificates  of  indebtedness  charge- 
able upon  such  property,  the  par  value  of  such  certificates  shall  be 
credited  to  this  account.  Interest  accruing  upon  such  certificates  shall 
also  be  credited  monthly  to  this  account. 

22.  ADVANCES  FROM   SYSTEM  CORPORATIONS  FOR  CONSTRUCTION,  Eo_np- 

MENT   AND   BETTERMENTS. 

Credit  to  this  account  advances  from  proprietary,  affiliated,  con- 
1  rolled  and  controlling  corporations  to  enable  the  accounting  corpora- 
tion to  pay  for  construction,  equipment,  additions  and  betterments 
when  such  advances  are  of  a  permanent  nature  (i.  e.,  where  there  is  not 
an  understanding  that  the  advances  are  to  be  repaid  within  one  year) 
or  when  it  is  understood  and  intended  that  a  reimbursement  shall  be 
made  by  the  issue  of  the  securities  of  the  debtor  corporation. 

NOTE. — Temporary  advances  on  open  accounts  from  system  corporations  and  such 
advances  for  purposes  other  than  construction,  equipment,  additions  and  betterments 
shall  be  included  in  accounts  payable. 

2:}.  NOTES  PAYABLE: 

\Yhen  any  note  or  draft  which  matures  not  later  than  one  year  after 
date  of  issue  or  of  demand  is  issued  or  the  primary  liability  thereon 
assumed  by  the  corporation,  the  par  value  thereof  shall  be  credited  to 
this  account  and  when  it  is  paid  it  shall  be  charged  to  this  account  and 
credited  to  "Cash"  or  other  suitable  account  except  secured  notes 
proper  to  be  included  in  Account  No.  20  ''Funded  Debt." 
24.  ACCOPNTS  PAYABLE: 

Include  in  this  account  the  credit  balances,  showing  all  liabilities  of 
the  corporation  upon  open  accounts,  as  provided  for  in  the  following 
sub-accounts : 

A.  Accounts  irilli  Sijsfftn  Corporal&QU.  Credit  to  this  account  the 
amounts  owing  to  proprietary,  affiliated,  and  controlled  or  controlling 
corporations  on  open  accounts  other  than  those  provided  for  in  Account 
No.  22.  ''Advances  from  System  Corporations  for  Construction.  Equip- 
ment and  Betterments." 

3— E 


14  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATION'S. 

R  Audited  Yoin-lii  rx  (tn<l  Wages  Unpaid.     Credit  to  this  account  the 

amount  of  audited  vouchers  or  accounts  and  audited  payrolls  unpaid 
on  the  date  of  the  balance  sheet.  Include  also  the  amount  of  unclaimed 
wages  and  outstanding  pay  and  time  checks  issued  in  payment  of 


C.  Consumers'  Deposits.     Credit  to  this  account  as  such  deposits  are 
made  all  cash  deposited  with  the  corporation  by  consumers  for  elec- 
trical service  as  security  for  the  payment  of  bills.    Deposits  refunded 
should  be  charged  to  this  account   and  credited  to  cash.     Deposits 
applicable  to  uncollectible  electrical  bills  should  be  credited  to  the 
account  of  the  consumer  and  debited  to  this  account. 

D.  Miscellaneous    Accounts    Payable.     Credit    to    this    account    all 
amounts  owing  to  miscellaneous  creditors  on  open  accounts  and  not 
provided  for  elsewhere. 

25.  INTEREST  ACCRUED: 

Credit  to  this  account  at  the  close  of  each  month  the  interest  accrued 
during  the  month  upon  the  interest-bearing  indebtedness  issued  or 
assumed  by  the  corporation,  except  interest  on  judgments  and  receivers' 
certificates.  When  such  interest  is  paid  it  should  be  charged  to  this 
account  and  credited  to  ' '  Cash ' '  or  other  suitable  account.  The  interest 
accruing  on  any  judgment  against  the  corporation  or  upon  any  re- 
ceivers' certificates  shall  be  credited  to  the  account  to  which  such 
judgment  or  receivers'  certificates  stand  credited. 

26.  TAXES  ACCRUED: 

To  this  account  should  be  credited  taxes  that  have  accrued  but  are 
not  yet  due.  The  full  amount  of  taxes  for  the  year  should  be  estimated 
and  charged  equally  (one  twelfth)  to  the  expenses  (Account  No.  E-91) 
of  each  month,  with  corresponding  credit  to  this  account,  as  soon  as  the 
amount  of  the  taxes  for  the  period  is  known,  the  accounts  should  be 
adjusted  to  conform.  When  taxes  become  due  and  are  voucher*-.!,  they 
should  be  charged  to  this  account. 

27.  DIVIDENDS  DECLARED: 

When  any  dividend  is  declared,  the  amount  of  the  dividend  shall  be 
credited  to  this  account  and  here  remain  until  it  is  paid,  when  the 
amount  of  the  payment  shall  be  charged  to  this  account  and  credited 
to  "Cash"  or  other  suitable  account. 

28.  SERVICE  BILLED  IN  ADVANCE: 

When  bills  are  made  for  service  to  be  rendered  in  future  months,  and 
the  amount  of  the  bills  is  included  in  "Accounts  Receivable,"  but  not 
in  the  revenue  accounts,  the  proportion  of  the  bills  applicable  to  future 
months  shall  be  credited  to  this  account.  As  the  term  for  which  the 


CLASSIFICATION  OF  ACCOUNTS,   KLECTRIC  CORPORATIONS.  15 

hills  is  made  expires,  the  appropriate  revenue  account  should  he  cred- 
ited and  this  account  debited  with  the  amount  applicable  to  the  current 
month. 


Credit  to  this  account  or  to  appropriate  sub-accounts  such  amounts 
as  are  concurrently  charged  to  Account  No.  E-93,  "Depreciation  of 
Plant  and  Equipment."  Charge  to  this  account  or  to  appropriate  sub- 
accounts  (except  as  prescribed  in  the  notes  hereunder)  the  realized 
depreciation  in  the  several  classes  of  tangible  fixed  capital ;  that  is,  the 
difference  between  the  original  cost  (estimated  if  not  known)  of  prop- 
erty relinquished,  retired,  or  destroyed,  and  the  value  of  any  salvage 
recovered.  Charge  also  to  this  account  such  part  of  the  expenditures 
for  repairs  concurrently  credited  to  Account  No.  E-88,  "Repairs 
Charged  to  Reserves — Cr."  as  may  have  been  provided  for  in  estimat- 
ing the  rate  of  depreciation.  (See  Account  No.  E-93,  "Depreciation 
of  Plant  and  Equipment.") 

NOTE  A. — When  any  property  is  retired  which  was  installed  prior  to  the  raising 
of  the  "Reserve  for  Accrued  Depreciation,"  only  such  portion  of  the  realized  depreci- 
ation shall  be  charged  to  the  reserve  as  is  due  to  life  in  service  after  the  establish- 
ment of  the  reserve ;  this  portion  may  be  estimated  on  the  basis  of  the  proportion 
which  the  life  in  service  of  the  property  in  question  after  the  establishment  of  the 
reserve  bears  to  its  entire  life  in  service.  The  remainder  of  the  realized  depreciation 
shall  be  charged  to  Account  No.  114-B  "Realized  Depreciation  Not  Covered  by  Re- 
serves,"  unless  the  corporation  has  on  its  books  a  depreciation  reserve  accumulated 
prior  to  the  establishment  of  the  prescribed  depreciation  rules,  in  which  case  such 
other  remainder,  or  so  much  of  it  as  may  be  provided  for,  shall  be  charged  to  such 
other  reserve  account. 

NOTK  B. — When  any  property  is  retired  whose  book  value  has  been  reduced  by 
writing  off  estimated  depreciation,  only  that  part  of  the  realized  depreciation  which 
has  not  already  been  written  off  shall  be  charged  as  above  to  the  "Reserve  for 
Accrued  Depreciation,"  or  Account  No.  114-B,  "Realized  Depreciation  Not  Covered  by 
Reserves." 

NOTE  C. — When  any  property  is  retired  whose  book  value  is  greater  than  the 
known  or  estimated  cost,  such  excess  shall  be  charged  to  "Corporate  Surplus  or 
Deficit"  and  the  realized  depreciation  shall  be  charged  as  elsewhere  directed. 

NOTE  D. — If  any  property  is  sold  for  more  than  its  original  cost,  the  amount  of 
depreciation,  if  any.  accrued  and  credited  to  a  reserve  in  respect  thereof,  shall  be 
determined  as  accurately  as  possible  and  charged  to  such  reserve.  The  sum  of  the 
amount  so  charged  and  the  excess  of  the  selling  price  over  the  cost  of  the  property 
shall  bi--  ci-.-.Iit.-d  to  Account  No.  H5  "Miscellaneous  Additions  to  Surplus." 

Mil.   IiKSKKYK  KOI;  AMORTIZATION  OF  INTANGIBLE  CAPITAL: 

Credit  to  this  account  such  amounts  as  are  concurrently  charged  to 
Account  No.  111-B.  "Amortization  of  Landed  Capital,"  and  to  Ac- 
count No.  E-92,  "Amortization  of  Franchises  and  Patents."  Charge 
to  this  account  when  any  franchise,  patent,  or  landed  capital  expires 
or  is  relinquished,  the  amount  at  which  it  stood  charged  in  the  corpora- 
tion's  fixed  capital  accounts,  or  such  amount  as  has  been  previously 
credited  to  this  reserve  in  respect  of  such  capital  if  the  amortization 
has  not  been  fully  accomplished.  That  portion  of  its  cost  which  has 
not  been  covered  by  credits  to  the  reserve  or  previously  written  off  shall 
be  charged  to  Corporate  Surplus  or  Deficit  account  as  "Amortization 
Unprovided  for  Elsewhere." 


16  CLASSIFICATION  OF  ACCOUNT^.  EI.Kfl  !M(     CORPORATIONS. 

:il.   IN  AMORTIZED  PREMIUM  ON  DEBT: 

When  funded  debt  securities  or  other  evidences  of  indebtedness 
issued  or  assumed  by  the  corporation  are  disposed  of  for  a  considera- 
tion whose  cash  value  is  greater  than  the  sum  of  the  par  value  of  such 
securities  or  other  evidences  of  indebtedness  and  the  interest  thereon 
accrued  at  the  time  the  transfer  takes  place,  the  excess  of  the  cash  value 
of  such  consideration  received  over  the  sum  of  the  par  value  of  the 
securities  or  other  evidence  of  indebtedness  and  the  accrued  interest 
shall  be  credited  to  this  account.  At  monthly  intervals  thereafter  a 
proportion  of  such  premium  based  upon  the  life  to  maturity  of  the 
security  or  other  evidence  of  indebtedness  sha-11  be  charged  to  this 
account  and  credited  to  Account  No.  110,  "Amortization  of  Premium 
on  Debt— Cr."  in  the  Income  Account. 

32.  CASUALTY  AND  INSURANCE  RESERVES: 

When  any  admitted  liability  arises  because  of  loss  or  damage  to  the 
property  of  others,  or  of  injuries  to  employees  or  other  persons,  the 
amount  of  the  liability  may  (if  not  previously  provided  for  by  insur- 
ance or  self-insurance)  be  charged  to  the  appropriate  operating  ex- 
pense or  other  accounts  .and  credited  to  this  account,  against  which  (in 
such  case)  the  actual  cost  of  satisfaction  of  the  liability  shall  be  charged 
when  the  matter  is  determined.  If  the  extent  of  the  liability  can  not  be 
ascertained  promptly  after  the  liability  arises,  it  may  be  estimated  as 
accurately  as  practicable  for  the  purpose  of  determining  the  immediate 
charge  to  the  expense  or  other  appropriate  account,  in  which  case  the 
matter  shall  be  adjusted  when  the  extent  of  the  liability  is  definitely 
ascertained.  If  the  loss  is  of  such  character  that  it  is  in  whole  or  in 
part  indemnifiable  under  any  contract  of  insurance  carried  by  the 
corporation,  the  indemnifiable  portion  of  the  loss  shall  be  charged  to 
the  insurer  and  credited  to  "Casualty  and  Insurance  Reserves."  Also 
credit  to  this  account  the  amounts  charged  to  operating  expense  Ac- 
count No.  E-75,  "Insurance,"  to  cover  self-carried  risks. 

33.  INCOME  INVESTED  SINCE  DECEMBER  31.  1912.  IN  FIXED  CAPITAL: 
Credit  to  this  account  such  amounts  from  income  or  surplus  as  are 

definitely  set  aside  to  cover  expenditures  for  extensions  or  improve- 
ments of  the  fixed  capital  of  the  accounting  corporation ;  such  appro- 
priations include  those  made  discharging  the  principal  (less  the  <li^- 
count.  if  any.  suffered  at  the  time  of  sale  of  any  obligations  ineiinvd 
in  the  acquisition  of  any  property  whos.-  rust  is  earned  in  the  fixed 
capital  accounts.  The  amounts  credited  to  this  account  shall  l>e  con- 
currently charged  to  "Corporate  Surplus  or  Deficit"  account  as 
"Appropriations  to  Reser 


CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS.  it 

This  account  should  not  include  temporary  appropriations  for  the 
acquisition  of  property  the  cost  of  which  is  intended  later  to  be  met  by 
an  issue  of  securities,  nor  appropriations  for  the  payment  of  obligations 
which  are  intended  to  l;e  replaced  by  new  issues. 

34.  KESERVES  INVESTED  IN  SINKING  FUNDS: 

Credit  to  this  account  appropriations  from  surplus  speeitieally  in- 
vested <))•  set  aside  in  the  hands  of  trustees  for  sinking  and  redemption 
funds,  including  accretions  to  such  funds. 

35.  OTHER  KESERVES  i  ROM  IXCO.ME  OR  SURPLUS: 

Credit  to  this  account  all  appropriations  of  income  or  surplus  held 
in  reserve,  other  than  appropriations  invested  in  fixed  capital  since 
December  •'->!.  1!)12.  and  appropriations  invested  in  sinking  or  redemp- 
tion funds.  A  separate  sub-account  shall  be  raised  for  each  reserve, 
and  the  entries  in  such  sub-accounts  will  be  required  to  be  shown  sepa- 
rately in  the  annual  report  to  the  Railroad  Commission. 

This  account  includes  the  unexpended  balance,  if  any.  of  appropria- 
tions intended  to  be  invested  in  fixed  capital,  and  such  appropriations 
to  sinking  or  redemption  fund  reserves  as  are  not  specifically  invested. 

36.  CORPORATE  SURPLUS  UNAPPROPRIATED: 

1'nder  this  head  should  be  shown  the  credit  balance,  if  any,  in  the 
"Corporate  Surplus  or  Deficit  Account/' 

FIXED   CAPITAL   ACCOUNTS. 

FIXED  CAPITAL  DEFINED  : 

By  the  fijccd  capital  of  a  corporation  is  meant  the  property,  both 
tangible  and  intangible,  which  is  devoted  to  the  accomplishment  of  the 
principal  purposes  of  its  business  and  which  has  an  expectation  of  life 
in  service  of  more  than  one  year  from  date  of  installation  of  service 
(exception  being  made  in  the  ease  of  hand  tools  and  other  small  port- 
able tools  that  may  be  lost  or  stolen). 

COST  OF  FIXED  CAPITAL  : 

The  term  "Cost"  as  used  in  the  texts  for  fixed  capital  accounts 
means  the  original  cost  to  the  corporation.  It  includes  not  only  the 
costs  of  labor,  materials  and  supplies  directly  employed  or  consumed 
in  the  construction  and  installation  of  property  classed  as  fixed  capital, 
but  also  the  cost  of  preliminary  plans  and  surveys  and  such  portion  of 
the  expenses  for  engineering  and  plant  supervision  and  general  ex- 
penses as  may  be  chargeable  to  the  fixed  capital  accounts  under  an 
equitable  plan  for  the  apportionment  of  such  expense. 

Intangible  Capital  comprises  organization,  franchises,  patent  rights, 
water  rights,  and  all  other  intangible  property  or  possessions. 


18  CLASSIFICATION'  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

INTANGIBLE  CAPITAL. 

C-l.  ORGANIZATION  : 

Charge  to  this  account  all  fees  paid  to  governments  for  the  privilege 
of  incorporation,  and  all  office  and  other  expenditures  incident  to 
organizing  the  corporation  or  other  enterprise  and  putting  it  in  readi- 
ness to  do  business.  This  includes  the  cost  of  preparing  and 
distributing  prospectuses,  the  cost  of  soliciting  subscriptions  for  stock 
(but  not  for  loans  nor  for  the  purchase  of  bonds  or  other  evidence  of 
indebtedness),  cash  fees  paid  to  promoters,  and  the  actual  cash  value  at 
the  time  of  organization  of  securities  paid  to  promoters  for  their  serv- 
ices in  organizing  the  enterprise;  counsel  fees;  cost  of  preparing  and 
issuing  certificates  of  stock,  and  cost  of  procuring  certificates  of 
necessity  from  state  authorities,  and  other  like  costs.  This  account  shall 
not  include  any  discounts  upon  stocks  or  other  securities  issued,  nor 
shall  it  include  any  costs  incident  to  negotiating  loans  or  selling  bonds 
or  other  evidence  of  indebtedness. 

NOTE. — Costs  incident  to  preparing  and  filing  certificates  of  authorization  of  in- 
crease of  capital  stock,  and  to  the  negotiation  and  issue  of  stock  thereunder,  art- 
classed  as  additions.  The  cost  of  preparing  and  filing  certificates  of  amendment  of 
articles  of  incorporation  is  classed  as  a  betterment.  The  cost  of  preparing  and  filing 
papers  in  connection  with  the  extension  of  the  term  of  incorporation  or  with  reincor- 
poration  consequent  upon  reorganization  shall  be  classed  as  a  renewal. 

C-2.  FRANCHISE  (ELECTRIC)  : 

Charge  to  this  account  the  amount  (exclusive  of  any  tax  or  annual 
charge)  actually  paid  to  the  state,  or  to  a  political  subdivision  thereof, 
as  the  consideration  for  the  grant  of  such  franchise  or  right  as  is 
necessary  to  the  conduct  of  the  corporation's  electric  operations.  If 
any  such  franchise  is  acquired  by  mesne  assignment,  the  charge  to  this 
account  in  respect  thereof  must  not  exceed  the  amount  actually  paid 
therefor  by  the  corporation  to  its  assignor. 

If  any  such  franchise  has  a  life  of  not  more  than  one  year  after  the 
date  when  it  is  placed  in  service,  it  shall  not  be  charged  to  this  account 
but  to  the  appropriate  accounts  in  "Operating  Expenses"  and  in 
"Prepayments,"  if  extending  beyond  the  fiscal  year. 

Payments  made  to  the  state  or  to  some  subdivision  thereof  as  a  con- 
sideration for  granting  an  extension  for  more  than  one  year  of  the  life 
period  of  a  franchise  shall  be  classed  as  renewals.  Those  made  a>  a 
consideration  for  franchises  or  extensions  thereof  covering  additional 
territory  to  be  operated  as  a  part  of  an  existing  system  shall  be  classed 
as  betterments.  If  the  franchises  cover  separate  and  distinct  new 
enterprises  the  payments  therefor  shall  be  classed  as  original. 

NOTE. — Annual  or  more  frequent  payments  in  respect  of  franchises  must  not  be 
charged  to  this  account  but  to  the  appropriate  tax  or  operating  expense  account. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  19 

C-3.  PATENT  RIGHTS: 

Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more 
than  one  year  from  the  date  when  placed  in  service)  acquired  by  the 
corporation  in  or  under  valid  patents  granted  by  the  United  States  to 
inventors  for  inventions  and  discoveries  which  are  necessary  to  the 
economical  conduct  of  the  corporation's  electric  operations. 

NOTE. — If  a  patent  right  is  extended  to  cover  a  further  period  of  time  than  that 
covered  by  the  original  grant,  the  cost  of  such  extension  is  classed  as  a  renewal.  A 
patent  right  acquired  for  use  in  an  existing  system  and  necessary  to  the  economical 
operation  thereof  is  classed  as  an  addition. 

C-4.  OTHER  INTANGIBLE  CAPITAL: 

Charge  to  this  account  the  cost  of  all  other  intangible  capital  devoted 
to  electric  operations.  Entries  of  charges  to  this  account  shall  describe 
the  acquired  property  with  sufficient  particularity  clearly  to  identify  it, 
and  shall  also  show  specifically  the  principal  from  whom  acquired  and 
all  agents  representing  such  principal  in  the  transaction ;  also  the  term 
of  life  of  such  property,  estimated  if  not  known,  and  if  estimated,  the 
facts  upon  which  the  estimate  is  based. 

Corporations  in  Class  C  may  consolidate  these  four  accounts,  carry- 
ing one  account,  "Intangible  Capital." 

Tangible  Capital  comprises  structures,  equipment  and  facilities  hav- 
ing an  expectation  of  life  in  service  of  more  than  one  year.  Because 
of  their  liability  to  loss  and  theft,  hand  and  other  small  portable  tools 
are  excepted  from  tangible  capital,  and  the  cost  of  such  tools,  when 
issued,  is  required  to  be  treated  as  a  part  of  the  operating  expenses  or 
to  be  charged  to  other  suitable  accounts. 

TANGIBLE  CAPITAL. 
Landed  Capital. 

C-5.  LAND  DEVOTED  TO  ELECTRIC  OPERATIONS: 

Charge  to  this  account  the'  cost  of  the  accounting  corporation's 
landed  capital  which  is  devoted  to  electric  operations  as  hereinbefore 
defined.  This  includes  land  occupied  by  generating  stations  and  their 
appurtenances,  rights  of  way  for  transmission  and  distribution  lines 
and  other  electric  operations,  also  those  for  canal  and  pipe  lines,  water 
rights,  and  rights  of  pondage,  flowage,  and  submersion,  where  such 
rights  have  lives  in  excess  of  one  year  from  the  date  when  such  land  is 
placed  in  service.  Such  cost  includes,  when  assumed  or  paid  by  the 
purchaser  in  its  own  behalf,  cost  of  registration  of  title,  cost  of  examina- 
tion of  title,  conveyancer's  and  notary's  fees,  purchasing  agent's  com- 
missions or  fees,  or  proportion  of  purchasing  agent's  salary,  taxes 
accrued  to  date  of  transfer  of  title,  and  all  liens  upon  the  title  acquired ; 
also  cost  of  obtaining  consents  and  payments  for  abutting  damages. 

NOTE  A. — Cost  of  buildings  and  other  improvements  must  not  be  included  in  this 
account. 


20  CLASSIFICATION  OF  ACCor.NTS.   ELECTRIC   CORPORATION:-. 

XOTE  B. — If  at  the  time  of  acquisition  of  an  interest  in  la  mis  it  extends  to  build- 
ings or  other  improvements  thereon,  which  improvements  are  devoted  by  the  corpora- 
tion to  its  electric  operations,  and  the  contract  of  acquisition  does  not  determine  the 
price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash  value  for  use 
in  such  operations,  and  such  appraised  value  shall  be  charged  to  the  appropriate 
structures  account  and  excluded  from  the  account  "Land  Devoted  to  Electric  Opera- 
tions" if  such  improvements  are  not  devoted  to  electric  operations,  but  are  devoted 
to  other  operations  or  held  as  investments,  the  cost  (or  appraised  value  if  the  cost  is 
not  determined  in  the  contract  of  acquisition)  shall  be  charged  to  the  appropriate 
investment  account  or  capital  account  for  other  operations.  If  the  improvements  an- 
removed  or  wrecked,  the  salvage  (less  the  cost  of  removal  of  wreckage)  shall  be 
excluded  from  the  account  "Land  Devoted  to  Electric  Operations."  The  entries  in 
this  account  must  be 'made  in  such  wise  as  to  enable  the  corporation  to  show  in  its 
annual  report  to  the  Railroad  Commission  the  subdivision  of  the  cost  of  its  land 
devoted  to  electric  operations  into  the  following : 

Land  devoted  to  Production  Operations. 

Land  devoted  to  Transmission  Operations. 

Land  devoted  to  Distribution  Operations. 

Land  devoted  to  Joint  Operations,  and 

Land  devoted  to  other  operations. 

Production   Capital. 

C-6.  DAMS.  WATER  CONDUITS  AND  PENSTOCKS: 

Charge  to  this  account  the  cost  of  all  reservoirs,  dams,  canals,  aque- 
ducts and  penstocks  devoted  to  the  utilization  of  water  power  and  the 
delivery  of  water  to  the  headgate  of  the  turbine  or  watcrwheel  :  also 
that  of  all  wasteways  from  the  outlet  of  the  draft-tube  to  the  point  of 
final  discharge.  This  includes  all  gates,  valves  and  other  accessories  of 
such  reservoirs,  dams,  etc.;  also  wasteways.  sluices,  forcbays.  grids. 
walls,  fences,  etc.,  for  the  protection  of  such  canals  and  penstocks,  and 
all  trestles,  and  other  supporting  structures:  also  all  viaducts,  bridges. 
foot-bridges,  etc..  over  and  accessory  to  and  necessitated  by  such  canals 
aqueducts  and  penstocks;  also  the  cost  of  all  necessary  buildings  in 
connection  therewith,  such  as  dwellings,  stables,  cookhouses,  clubhouse. 
etc.,  also  water  wells  and  pumps. 
C-7.  POWER  PLANT  BUILDINGS  AND  GENERAL  STRUCTURES: 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended 
in  erecting  buildings  to  be  used  for  housing  power  generating  plants. 
This  account  includes  the  cost  of  excavations,  permanent  foundations. 
drainage,  gas  and  water  pipes  and  connections,  grading  ^rounds,  and 
furniture  and  fixtures  when  permanently  attached  to  and  made  a  part 
of  the  buildings;  also  the  cost  of  architects'  plans  and  of  superintend- 
ence of  construction;  also  the  cost  of  all  necessary  buildings  in  connec- 
tion therewith,  such  as  dwellings,  stables,  cookhouses,  clubhouses,  etc.: 
also  water  wells  and  pumps. 

C-8.  HYDRAULIC  POWER  PLANT  EQUIPMENT: 

Charge  to  this  account  the  cost  of  all  water  wheels  and  turbines 
devoted  to  the  generation  of  electrical  energy,  including  foundations 
and  settings,  their  governors  and  all  apparatus  appurtenant  thereto 
from  the  headgates  and  governors  to  wasteways.  Include  also  the  cost 


CLASSIFICATION"  OF  ACCOUNTS,   KI.KCTKIC  CORPORATIONS.  21 

of  all  electric  generating  apparatus  driven  by  hydraulic  power  and 
rotaries  and  motor-generator  sets,  exciters,  etc.,  when  not  installed  in 
connection  with  transmission  systems,  together  with  their  specially 
provided  foundations  and  settings.  Include  in  this  account  also  the 
cost  of  all  electric  equipment  of  the  power  plant,  embracing  station 
switchboards,  and  such  equipment  as  circuit  breakers,  switches,  meters 
and  their  settings,  headgate  motors  and  other  electric  apparatus.  Belts, 
pulleys,  shafting  and  other  power  transmission  apparatus  in  the 
hydraulic  power  plant  will  also  be  included  in  this  account. 

(..'--!).    Fl'RXACES.    KoiLKRS.    AND    ACCESSORIES: 

Charge  to  this  account  the  cost  of  all  furnaces,  fuel  oil  tanks  and 
pipe  lines,  boilers  and  boiler  apparatus  and  accessories  devoted  to  the 
production  of  steam  for  use  in  generating  electrical  energy.  This 
includes  boilers  and  valves  thereto  attached,  appurtenant  furnaces  and 
grates,  and  flues  leading  to  smokestacks  and  chimneys,  and  the  specially 
provided  foundations  and  settings  for  such  boilers  and  appurtenances ; 
also  iron  smokestacks.  It  also  includes  mechanical  stokers  and  other 
like  apparatus  for  regulating  the  supply  of  fuel,  etc.,  feed  and  hot 
water  heaters  and  economizers,  injectors,  niters,  feed  pumps,  blower 
engines,  coal  conveyors,  ash  conveyors,  water  pipes,  steam  traps,  drains 
and  separators,  and  pipes  for  conducting  steam  from  boiler  to  the 
engine  or  to  the  gas  producers,  etc.  It  does  not  include  the  cost  of 
steam  pipes  whose  primary  purpose  is  the  heating  of  buildings. 

0-10.  STEAM  POWER  PLANT  EQUIPMENT: 

Charge  to  this  account  the  cost  of  all  steam  engines  devoted  to  the 
production  of  electrical  energy.  This  includes  the  specially  provided 
foundations  and  settings  for  engines.  The  engines,  whether  recipro- 
cating or  rotary  (such  as  steam  turbines),  shall  be  considered  to  include 
the  throttle  or  inlet  valve  and  the  governor:  also  condensers,  air  and 
circulating  pumps,  lubricating  systems,  etc..  but  not  the  steam  pipe 
from  the  boiler.  Where  the  electric  rotor  is  mounted  on  the  engine 
shaft,  the  shaft  shall  be  considered  a  part  of  the  steam  engine  and  the 
electric  rotor  shall  be  considered  a  part  of  the  electric  equipment. 
Also  the  cost  of  all  electric  generating  apparatus  driven  by  engines 
operated  by  steam  and  rotors  and  motor-generating  sets,  exciters,  etc., 
when  not  installed  in  connection  with  transmission  systems.  This  in- 
cludes the  specially  provided  foundations  and  settings  for  such  appa- 
ratus; also  the  cost  of  all  other  electric  equipment  of  generating  sta- 
tions, such  as  station  switchboards  and  their  equipment  and  their 
foundations  and  settings :  also  pump  motors,  air  compressor  motors,  etc. 


4— E 


22  CLASSIFICATION'  OF  ACCol  "NTS.  EI.ECTRIC  CORPORATIONS. 

< ' -11 .  GAS  PRODUCERS  AND  ACCESSORIES  : 

Charge  to  this  account  the  cost  of  nil  producers  ;itul  accessories 
devoted  to  the  production  of  gas  for  the  purpose  of  operating  electric 
generators,  including  the  cost  of  specially  provided  foundations  and 
settings  for  such  producers  and  accessories.  Also  include  producers, 
economizers,  regenerators,  vaporizers,  steam  injectors,  scrubbers,  ex- 
hauster outfits,  seals,  specially  provided  boilers  and  pumps,  flues  and 
piping,  blower  engines,  pipes  for  the  conduction  of  gas  from  such  pro- 
ducers to  holders  and  to  g^  engines,  holders  for  producer  gas,  exhaust 
pipes  from  gas  engines,  etc.  Do  not  include  pipes  whose  primary  pur- 
pose is  the  heating  of  buildings,  nor  power  transmission  apparatus,  nor 
water  pipes,  steam  pipes,  water  pumps  or  inspirators. 

C-12.  GAS  POWER  PLANT  EQUIPMENT  : 

Charge  to  this  account  the  cost  of  all  gas  engines  devoted  to  the 
production  of  electrical  energy,  including  the  specially  provided  founda- 
tions and  settings  of  such  engines.  The  engine  includes  the  inlet  valve, 
governor,  and  ignition  and  starting  apparatus,  but  not  the  pipe 
leading  from  the  gas  holder.  Where  the  electric  rotor  is  mounted  on 
the  engine  shaft,  the  shaft  shall  be  considered  a  part  of  the  engine,  the 
electric  rotor  being  considered  a  part  of  the  electric  equipment.  In- 
clude also  the  cost  of  all  electric  generating  apparatus  driven  by  en- 
gines operated  by  gas;  and  rotaries,  motor-generator  sets,  exciters,  etc.. 
when  not  installed  in  connection  with  transmission  systems.  This  in- 
cludes the  specially  provided  foundations  and  settings  of  such 
apparatus.  Also  the  cost  of  all  other  electric  equipment  of  generating 
stations,  such  as  bus  bars,  station  switchboards  and  equipment,  and 
their  foundations  and  settings;  also  pump  motors,  air  compressor 
motors,  etc. 

C-13.  MISCELLANEOUS  PRODUCTION  EQUIPMENT: 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  used 
in  the  production  of  electricity  which  is  not  includible  in  any  of  the 
foregoing  accounts.  This  includes  tools  and  appliances  (working  stock 
only),  horses,  wagons,  harness,  autos,  motorcycles,  bicycles,  furniture 
and  fixtures,  roads,  trestles,  bridges,  etc.,  where  used  specifically  in  the 
production  of  electrical  energy. 

NOTE  A. — Where  any  item  of  miscellaneous  power  plant  equipment  is  jointly  used 
with  transmission,  distribution  or  other  departments,  the  cost  of  such  item  shall  be 
included  in  appropriate  sub-accounts  under  "General  Capital." 

NOTE  B. — It  will  be  required  that  this  account  be  so  kept  as  to  represent  at  all 
times  the  actual  working  miscellaneous  equipment ;  and  all  renewals  of  such  working 
equipment  shall  lie  charged  to  appropriate  accounls  other  than  capital,  or  tho  account 
must  be  adjusted  annually  to  physical  inventory. 


CLASSIFICATION1  OF  ACCOUNTS,  KI.KCTRH:  CORPORATIONS.  2'} 

Transmission  and  Distribution  Capital. 

C— .14.  POLKS  ANI>  FIXTURES: 

( '[large  In  this  account  the  cost  of  towers,  structures,  poles,  cross- 
arms  and  insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  guys 
and  other  supports  for  holding  the  towers,  structures  and  poles  in  posi- 
tion ;  and  all  labor  expended  in  connection  with  the  construction  of 
pole  lines  or  structures  for  carrying  the  transmission  and  distribution 
systems. 

A.  Transmission  system.  " 

B.  Distribution  system. 

( '-15.  OVERHEAD  SYSTEM  : 

Charge  to  this  account  the  cost  of  overhead  transmission  and  dis- 
tribution system  (exclusive  of  poles  and  fixtures),  including  cost  of 
cables  (for  overhead  system),  wires,  insulators  and  insulating  material, 
main  conductors  and  feeders,  and  all  labor  and  expense  in  connection 
therewith. 

A.  Transmission  system. 

B.  Distribution  system. 

C-16.  UNDERGROUND  CONDUITS: 

Charge  to  this  account  the  cost  of  conduits  required  for  underground 
wires  and  cables,  including  manholes,  ducts  and  pipes,  sewer  connec- 
tions, sewer  traps,  and  all  material  necessary  for  the  completion  of  the 
underground  conduit  system  devoted  to  the  protection  of  the  transmis- 
sion and  distribution  systems;  also  the  cost  of  cables  and  insulating 
material. 

A.  Transmission  system. 

B.  Distribution  system. 

C-17.  SUB-STATION  BUILDINGS  AND  GENERAL  STRUCTURES: 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended 
in  erecting  buildings  to  be  used  for  sub-station  purposes,  including 
excavations,  permanent  foundations,  drainage,  gas  and  water  pipes  and 
connections,  grading  grounds,  and  furniture  and  fixtures  when  perma- 
nently attached  to  and  made  a  part  of  the  buildings.  Include  also  the 
cost  of  architects'  plans,  and  of  superintendence  of  construction,  and 
the  cost  of  all  necessary  buildings  in  connection  therewith,  such  as 
dwellings,  stables,  cookhouses,  clubhouses,  etc.;  also  cost  of  water  wells 
and  pumps. 

A.  Transmission  system. 

B.  Distribution  svstem. 


24  CLASSIFICATION  OP  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

C-18.  SUB-STATION  EQUIPMENT: 

Charge  to  this  account  the  cost  of  all  equipment  of  sub-stations. 
Such  equipment  includes  electric  machinery  and  apparatus,  trans- 
formers, storage  batteries,  furnaces,  boilers,  stoves,  elevators,  etc.,  per- 
manently assigned  to  such  stations,  but  not  affixed  to  the  structures 
thereof.  It  does  not  include  laboratory  instruments  and  apparatus  not 
permanently  assigned  thereto,  nor  does  it  include  tools  only  tempor- 
arily assigned  to  such  stations. 

NOTE. — Include  under  this  account  all  transformer  and  sub-station  equipment  in- 
stalled in  power  plant  buildings  for  purposes  of  distribution  department. 

A.  Transmission  system. 

B.  Distribution  system. 

C-19.  MISCELLANEOUS  EQUIPMENT: 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  used 
in  the  transmission  or  distribution  of  electrical  energy  which  is  not 
includible  in  any  of  the  foregoing  accounts.  This  includes  tools  and 
appliances  (working  stock  only),  horses,  wagons  and  harness,  autos, 
motorcycles,  bicycles,  furniture  and  fixtures,  roads,  trestles  and  bridges, 
etc.,  where  used  specifically  in  the  transmission  of  electrical  energy. 

NOTE  A. — Where  any  items  of  miscellaneous  transmission  or  distribution  equipment 
are  jointly  used  in  connection  with  production  or  other  departments,  the  cost  of  such 
items  shall  be  included  in  appropriate  sub-accounts  under  "General  Capital." 

NOTK  B. — It  will  be  required  that  this  account  be  so  kept  as  to  represent  at  all 
times  the  actual  working  equipment;  and  all  renewals  of  such  miscellaneous  working 
equipment  shall  be  charged  to  appropriate  accounts  other  than  capital,  or  the  account 
must  be  adjusted  annually  to  physical  inventory. 

A.  Transmission  system. 

B.  Distribution  system. 

C-20.  LINE  TRANSFORMERS  AND  DEVICES: 

Charge  to  this  account  the  cost  of  all  line  transformers  (both  over- 
head and  underground),  pole  line  lightning  arresters,  transformer  cut- 
out boxes,  line  cut-out  switches,  etc.,  in  the  distribution  system. 

NOTE. — Upon  filing  with  the  Railroad  Commission  a  notice  thereof,  the  accounting 
corporation  may  also  include  in  this  account  the  cost  of  line  transformers  and  devices 
temporarily  withdrawn  from  service. 

C-21.  ELECTRIC  SERVICES: 

Charge  to  this  account  the  cost  of  all  conductors  (and  appurtenant 
insulation,  ducts  and  supports)  connecting  the  distribution  mains  with 
electric  apparatus  and  appliances  in  the  possession  of  consumers. 

NOTE. — Cost  of  renewing  or  modifying  services  shall  not  be  charged  to  this  account. 

C-22.  METERS: 

Charge  to  this  account  the  cost  of  all  meters  installed  for  determin- 
ing the  amount  of  energy  delivered  to  consumers.  The  cost  of  the 
original  setting  of  each  meter  will  be  charged  to  this  account  if  it  is  the 
policy  of  the  accounting  corporation  to  capital i/e  the  original  setting  of 


CLASSIFICATION  OF  ACCOTNTS,  ELECTRIC  CORPORATIONS.  ZO 

meters.     Subsequent  removing  and  the  resetting  of  meters  will  not  be 
charged  to  this  account,  but  to  operating  expenses. 

NOTE  A.  —  Upon  filing  with  the  Railroad  Commission  a  notice  thereof,  the  account- 
ing corporation  may  also  include  in  this  account  the  cost  of  meters  temporarily  with- 
drawn from  service. 

NOTE  13.  —  It  will  be  required  that  this  account  be  so  kept  as  to  represent  at  all 
times  the  actual  number  of  meters  in  service  or  temporarily  out  of  service;  and  all 
renewals  .shall  be  charged  to  appropriate  accounts  other  than  capital  or  the  account 
must  be  adjusted  annually  to  physical  inventory. 

0-23.  ^MUNICIPAL  STREET  LIGHTING  SYSTEM  : 

Charge  to  this  account  the  cost  of  all  lighting  equipment  operated 
and  maintained  under  contracts  for  public  lighting  entered  into  with 
a  municipality,  embracing  public  arc  lights,  Nernst  lamps  and  incan- 
descent lamps  provided  for  in  the  contract,  and  all  circuits,  poles, 
crossarms.  pins,  braces,  brackets,  insulators,  arc  supports,  and  accessory 
equipment  required  under  the  terms  of  such  contract.  There  will  not 
be  charged  to  this  account  the  cost  of  any  equipment  properly  charge- 
able to  "Distribution  System."  this  account  being  designed  to  cover 
only  the  cost  of  the  lighting  system  devoted  solely  to  the  municipal 
contract  service.  Where  the  terms  of  the  contract  or  an  ordinance  of 
the  municipality  require  extension  of  mains  and  services  for  lighting 
under  the  terms  of  the  contract,  the  cost  of  such  extension,  if  used 
solely  for  public  lighting  under  such  contract,  will  be  charged  to  this 
account.  Entries  to  this  account  in  respect  to  such  extensions  shall 
be  so  made  as  to  admit  of  a  classified  detailed  statement  when  called 
for  by  the  Eailroad  Commission. 

NOTE  A.  —  L'pon  filing  with  the  Railroad  Commission  a  notice  thereof,  the  account- 
ing corporation  may  also  include  in  this  account  the  cost  of  public  arc  and  other  lamps 
temporarily  out  of  service. 

NOTE  B.  —  Cost  of  taking  lamps  down  for  repairs  and  cost  of  rehanging  lamps 
shall  not  be  charged  to  this  account,  but  to  the  appropriate  operating  expense  account. 

NOTE  O.  —  All  lamp  renewals  and  replacements  shall  be  charged  to  the  appropriate 
operating  expense  account.  Corporations  may  also  segregate  this  account  into  the 
following  : 

Municipal   Street   Lighting  System  —  Poles,  Wires  and  Fixtures. 
Municipal   Street   Lighting  System  —  Lamps. 

The  lamps  account  should  then  be  adjusted  at  annual  intervals  to  physical  in- 
ventory by  contra  entry  to  the  accounts  chargeable  for  repairs  and  replacements. 

NOTE  D.  —  Poles  and  fixtures  installed  within  distribution  system  shall  not  be 
charged  to  this  account,  where  the  type  of  such  poles  and  fixtures  will  permit  of 
carrying  the  general  distribution  system  circuits. 


0-24.  COMMERCIAL  LAMPS  AND  LAMP 

Charge  to  this  account  the  cost  of  all  arc  lamps.  Xernst  lamps,  incan- 
descent lamps,  and  all  lamp  fixtures  and  equipment  devoted  to  commer- 
cial lighting  and  included  in  the  tangible  capital  of  the  corporation. 
Lamps  and  lamp  equipment  having  an  expectancy  of  life  in  service  of 
less  than  one  year  will  not  be  charged  to  this  account,  but  will  be  con- 
sidered an  operating  charge. 


26  CLASSIFICATION  OP  ACCOUNT*.  ELECTRIC  CORPORATIONS. 

C-25.  ELECTRIC  MOTORS  AND  HEATERS  : 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in 
electric  motors  and  heaters  leased  to  consumers  (including  municipali- 
ties), and  of  all  appurtenances  thereof,  such  as  fans,  etc. 

C-26.  INSTALLATIONS  ON  CONSUMERS'  PREMISES: 

Charge  to  this  account  the  cost  of  all  material  and  cost  of  installa- 
tion of  equipment  on  consumers'  premises  for  purposes  of  supplying 
energy  of  certain  voltage,  kind  or  character.  Such  installations  as 
come  hereunder  would  include  motor  sets  for  theater  lighting.  amuse- 
ment parks,  etc.  ;  also  motors,  fans.  etc. 

NOTE  —  Do  not  include  in  this  account  transformers,  meters,  services,  appliances 
loaned,  or  commercial  art-  lamps  and  lamps  installed  in  connection  with  rates  or 
renewals  thereof. 

NOTE.  —  Corporations  in  Classes  A  and  B  shall  for  the  purpose  of  annual  report 
to  the  Railroad  Commission  segregate  the  expenditure  account  of  transmission  and 
distribution  capital,  using  sub-accounts  A  and  B  as  above  provided.  Corporations  in 
Class  C  will  not  be  required  to  show  the  expenditures  in  this  respect  separately. 

General  Capital. 

C-27.  GENERAL  STRUCTURES: 

Charge  to  this  account  the  cost  of  all  buildings  and  other  structures 
of  a  permanent  character  devoted  to  general  corporate  purposes,  not 
restricted  to  electric  operations  and  not  includible  in  any  of  the  depart- 
mental accounts;  also  of  all  fixtures  permanently  attached  thereto  and 
made  a  part  thereof,  such  as  water  pipes  and  fixtures,  steam  pipes  and 
fixtures  for  warming  and  ventilating,  gas  pipes  and  fixtures  for  light- 
ing, etc.;  electric  wiring  and  fixtures  for  lighting,  signaling,  etc.; 
elevators,  etc.  ;  and  the  engines  and  motors  specially  provided  for  oper- 
ating them;  furnaces,  boilers,  etc.,  specially  provided  for  producing 
steam  for  such  engines  and  for  heating;  electric  generators  specially 
provided  for  producing  current  for  lighting  such  buildings,  ete.  This 
account  includes  such  piers  and  other  foundations  for  machinery  and 
apparatus  as  are  designed  to  be  as  permanent  as  the  building  in  (or 
in  connection  with)  which  they  are  constructed,  and  to  outlast  the  first 
machinery  or  apparatus  mounted  thereon. 

NOTE  A.  —  Among  such  buildings  may  be  mentioned  general  office  buildings,  general 
shop  buildings,  general  storehouses,  general  stable  buildings,  etc..  where  general 
offices,  shops,  storehouses,  stables,  etc..  are  in  buildings  includible  in  a  departmental 
account,  as,  e.  g.,  in  a  power  station  building,  no  part  of  the  cost  of  such  building 
shall  be  charged  to  this  account.  This  account  is  provided  for  structures  of  a  general 
or  miscellaneous  character,  not  assignable  to  any  particular  department. 

NOTE  B.  —  When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam  for 
some  particular  department  and  only  incidentally  for  furnishing  steam  for  heating  a 
general  building  and  operating  the  equipment  therein,  the  entire  cost  of  such  fdrnacea 
and  boilers  shall  be  charged  to  the  appropriate  departmental  capital  account,  and 
no  part  to  the  account,  "General  Struotun  s." 


C—  28.  GENERAL  K 

Include  in  this  account  the  cost  of  all  equipment  of  general  struc- 
tures, as  provided  under  the  following  heads  : 

A.  General  Office  Equipment.  The  cost  of  all  equipment  of  general 
offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  drafting- 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  27 

room  equipment,  and  other  like  office  appliances    and  equipment ;  also 
engineering  instruments. 

B.  General  Shop  Equipment.     The  cost  of  all  equipment  specially 
provided  or  general  shops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  electric  generators,  and- other  power  apparatus  used  in  operat- 
ing machinery  in  such  shops ;  machine  tools,  cranes,  hoists,  shafting 
belts  and  the  like  shop  equipment;  also  such  smithing  equipment  in 
general  shops  as  is  used  principally  for  other  general  purposes  than 
shoeing  horses  and  repairing  vehicles. 

NOTE. — Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall  not 
be  included  herein,  but  portable  tools  and  apparatus  of  special  value  may  be  charged 
to  this  account  and  remain  herein  so  long  as  record  is  kept  of  the  persons  to  whom 
such  tools  and  apparatus  are  issued  and  such  persons  are  made  responsible  therefor. 

C.  General  Store  Equipment.     The  cost  of  all  equipment  of  general 
store  structures,  such  as  movable  counters,  movable  shelving,  and  other 
movable   equipment   of  like  nature,   carts,   barrows,   trucks,   etc.,   and 
other  apparatus  and  appliances  used  in  handling  materials  and  sup- 
plies. 

XOTK. — Counters,  shelving  and  the  like  which  are  permanently  attached  to  the 
structure  shall  he  charged  to  Account  O-27,  "fJem-ral  Structures,"  and  not  to  this 
account. 

D.  General  Sfuhh    and  (i<ir<itj<    Equii>nt<nt.     The  cost  of  all  equip- 
ment of  general  stables  and  garages  including  horses,  harness,  drays, 
wagons,  automobiles  and  other  vehicles,  equipment  of  shoeing  shops, 
harness  repair  shops,  vehicle  repair  shops,  etc. 

E.  Miscellaneous  Equipment.     The  cost  of  allother  equipment,  such 
as  laboratory  equipment  and  other  tools  and  apparatus  and  miscel- 
laneous  equipment   not   iucludible   in   the    foregoing   accounts   under 
' '  General  Equipment. ' ' 

C-29.  Telephone  Lines.  Charge  to  this  account  the  cost  of  all  mate- 
rials and  labor  expended  in  the  construction  of  telephone  lines  for  the 
entire  system.  These  charges  should  include  the  cost  of  wires  and 
insulators,  crossarms,  poles  (where  devoted  solely  to  supporting  tele- 
phone lines),  telephone  instruments,  switchboards,  etc. 

NOTE. — Do  not  include  in  this  account  the  cost  of  any  portion  of  poles  or  supports 
where  jointly  used  in  the  transmission  or  distribution  of  electric  current. 

C-30.  ROADS,  TRESTLES  AND  BRIDGES: 

Charge  to  this  account  the  cost  of  all  labor  and  material  expended 
in  the  construction  of  roads,  trestles,  bridges  and  tramways  required 
for  the  transportation  of  machinery  and  supplies,  or  the  operation  of 
the  corporation. 

XOTK.  —  Do  not  includ^  in  this  account  the  cost  of  roads,  trestles  or  bridges  prop- 
erlv  rhn7-gt\iblf>  to  Account  C-6  and  C-19. 


28  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

C-31.  UNDISTRIBUTED  CONSTRUCTION  EXPENDITURE: 

A.  En(jin«rin(i  <nt<l  Superintendence.     Charge  to  this  account  all 
expenditures  for  services  of  engineers,  draftsmen,  and  superintendents 
employed  on  preliminary  and  construction  work,  and  all  expenses  inci- 
dent  to  the   work,   when   such   disbursements   can    not    be   assigned   to 
specific  construction. 

NOTE. — When  employees  enumerated  abnw  are  engaged  in  work  not  chargeable  to 
construction,  their  pay  and  expenses  shall  be  charged  to  the  specific  work  on  which 
engaged. 

B.  Law  E.rp<nx<x  During  Construction.     Charge  to  this  account  all 
law  expenses  incurred  during  the  period  of  construction  of  the  electric 
plant.     Charge  also  the  salaries  and  expenses  of  counsel,  solicitors  and 
general  attorneys,  their  clerks  and  attendants,  etc. ;  also  the  cost  of  law 
hooks,  printing  briefs,  legal  forms,  testimony  reports,  fees  and  retainers 
of  the   general   counsel   and   attorneys,   court   costs  and   payments   of 
specific  notarial  and  witness  fees,  expense  of  taking  depositions,  and 
general   law   and   court   expenses   during   construction.      Expenses   of 
arbitrators  of  disputed   points  will   also  be  charged  to   this   account. 
AVhen    any    of   the   expenditures   above   enumerated   can   be   charged 
directly  to  the  account  for  whose  benefit  they  were  incurred  they  shall 
be  so  charged  and  not  to  this  account.     Thus,  expenditures  in  connec- 
tion with  the  acquisition  of  land  to  be  occupied  by  the  stations  shall  be 
charged  to  the  appropriate  construction  account.     Law  expenses  in  con- 
nection with  the  organization  of  the  corporation,  whenever  such  can  be 
definitely  ascertained,  shall  be  charged  to  the  account  "Organization." 

C.  Injuries   and   Damages   During    Construction.      Charge   to   this 
account  all  damages  to  or  destruction  of  property  other  than  that  owned 
by  the  corporation,  caused  directly  in  connection  with  the  construction 
of  the  electric  plant,  and  all  expenses  incident  to  injuries  or  death  of 
employees  and  other  persons  for  which  injuries  or  death  the  corporation 
is  held  liable,  or  in  the  settlement  of  which  elaims  allowances  are  made. 
This  includes  such   items   of  expense   as  judgments  for  damages  and 
plaintiff's  court  costs;  proportion  of  salaries  and  expenses  or  fees  of 
physicians  and  surgeons,  expenses  of  undertakers,  nurses  and  hospital 
expenses,  medical  and  surgical  supplies,  contributions  to  hospitals  dur- 
ing the  period  of  construction  of  the  plant,  transportation  of  injured 
persons  and  wages  and  salaries  paid  to  employees  while  disabled.     The 
salaries  and  expenses  of  the  corporation's  claim  agents,  adjusters  and 
their  assistants  while  engaged  upon  settling  such  claims  arising  during 
construction  will  be  charged  to  this  account.     The  compensation  of  the 
general  solicitors  or  counsel  of  the  corporation   while  engaged  in  the 
defense  and  settlement  of  damage  suits  will   also   be  charged  to  this 
account, 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  29 

I).  7V/.rrx  Durimj  Cmixli'tH'lioit.  Charge  to  this  account  all  taxes  and 
assessments  levied  and  paid  on  property  belonging  to  the  corporation 
while  under  construction  and  before  the  plant  is  opened  for  commer- 
cial operation,  except  special  taxes  assessed  for  street  and  other  im- 
provements, such  as  grading,  sewering,  curbing,  guttering,  paving, 
sidewalks,  etc.,  which  shall  be  charged  to  the  account  to  which  the 
property  benefited  is  charged. 

K.  Miscellaneous  Construction  Expenditures.  Charge  to  this  ac- 
count the  salaries  and  expenses  of  executive  and  general  officers  of  an 
electric  plant  under  construction;  clerks  in  general  offices  engaged  on 
construction  accounts  or  work;  rent  and  repair  of  general  offices  when 
rented,  with  the  office  expenses;  insurance  during  construction;  also 
all  construction  and  equipment  items  of  a  special  and  incidental  nature 
which  can  not  properly  he  charged  to  any  other  account  in  this  classifi- 
cation. 

NOTE. — This  account  shall  not  include  any  costs  of  organization,  or  any  costs  or 
discounts  connected  with  the  issue  and  disposal  of  stocks,  funded  debt,  or  other 
securities  and  commercial  paper. 

C-32.  INTEREST  DURING  CONSTRUCTION  : 

Charge  to  this  account  the  interest  accrued  upon  all  moneys  (and 
credits  available  upon  demand)  acquired  for  use  in  connection  with 
the  construction  and  equipment  of  the  property  from  the  time  of  such 
acquisition  until  the  construction  is  ready  for  use.  Interest  receivable 
accrued  upon  such  moneys  and  credits  shall  be  credited  to  this  account. 
To  this  account  shall  also  be  credited  discounts  realized  through  prompt 
payment  of  bills  for  materials  and  supplies  used  in  construction,  unless 
such  discounts  are  credited  to  the  particular  bills. 

C-33.  COST  OF  PLANT  PURCHASED  IN  LIEU  OF  PLANT  CONSTRUCTED: 

('barge  to  this  account  the  cost  of  electric  plant  purchased  in  case 
the  plant  of  the  corporation  is  obtained  by  purchase  instead  of  being 
constructed  by  it. 

The  entry  to  this  account  should  show  with  sufficient  detail  the  name 
of  the  parties  from  whom  purchased,  the  purchase  price  and  other 
fads  pertinent  to  such  purchase.  All  books  and  records  should  be 
retained  at  time  of  purchase.  The  Railroad  Commission  will  require 
full  and  complete  details  of  all  transactions  of  purchase. 

C-34.   FIXED  CAPITAL  IN  OTHER  DEPARTMENTS: 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation. 
both  tangible  and  intangible,  devoted  to  its  operations  other  than 
electric,  not  including  investments  as  defined  in  Account  No.  8, 
"Investments." 


5— E 


30  CLASSIFICATION  OF  ACCOUNTS.  KI.KCTKIC  CORPORATIONS. 


C-35.  FIXED  CAPITAL,  INSTALLED  PRIOR  TO  .IANCAKV  1. 

In  this  account  (on  the  balance  sheet  statement)  shall  be  shown  the 
total  of  the  balances  in  the  ledger  accounts  representing  the  corpora- 
tion's fixed  capital  which  was  installed  prior  to  January  1.  1913.  and 
which  is  still  in  service  at  the  date  of  bqlance.shcit. 

The  accounts  representing  the  fixed  capital  of  the  corporation  as 
carried  on  its  books  at  the  close  of  December  31.  1912.  shall  be  so 
designated  upon  the  books  of  the  corporation  as  to  show  clearly  that 
they  relate  only  to  fixed  capital  installed  prior  to  the  close  of  that  date. 
No  debits  shall  be  made  to  such  accounts  with  respect  to  any  property 
subsequently  acquired,  but  the  cost  of  such  property  shall  be  charged 
to  the  accounts  hereinbefore  provided.  When  any  property  acquired 
prior  to  January  1,  1913.  is  withdrawn  or  retired  from  service,  the 
amount  at  which  it  stands  charged  shall  be  credited  to  the  account  in 
which  it  is  charged  and  concurrent  debits  shall  be  made  (1)  to  "Cash," 
"Materials  and  Supplies,"  or  other  account,  as  may  be  appropriate. 
for  the  value  of  any  salvage;  (2)  to  Account  No.  29,  "Reserve  for 
Accrued  Depreciation,"  or  to  Account  No.  30,  "Reserve  for  Amortiza- 
tion of  Intangible  Capital,"  for  the  amount  of  depreciation  or  other 
amortization  applicable  to  the  period  subsequent  to  December  31,  1912  ; 
and  (3)  'to  "Corporate  Surplus  or  Deficit"  account  for  the  remainder 
of  the  amount  at  which  the  property  is  carried  in  the  accounts  for  fixed 
capital;  unless  the  corporation  had  on  that  date  a  reserve  for  retire- 
ments, in  which  case  the  latter  amount,  or  so  much  of  it  as  may  be 
applicable,  shall  be  charged  to  such  reserve  account. 

NOTE.  —  In  the  reports  to  the  Railroad  Commission,  a  statement  will  be  required 
showing  the  names  of  the  accounts  for  fixed  capital  actually  carried  by  the  corpora- 
tion on  December  31,  1912,  and  the  balances  therein  at  the  date  of  the  report. 

C-36.  FIXED  CAPITAL  INSTALLED  SINCE  DECEMBER  31,  1912  : 

This  account  is  a  summary  of  the  accounts  representing  the  corpora- 
tion's fixed  capital  since  December  31.  1912,  and  should  show  the 
of  the  fixed  capital  wrhich  has  been  installed  since  that  date  and  is  still 
in  service  at  the  date  of  the  balance  sheet.  (For  the  primary  Fixed 
Capital  Accounts,  see  Account  C-l  to  C-4.  "Intangible  Capital."  and 
Accounts  C-5  to  C-35,  "Tangible  Capital.") 

INCOME  ACCOUNT. 

INCOME  ACCOUNT  DEFINED: 

The  income  account  brings  together  those  accounts  that  show  the  total 
amount  of  money  that  the  corporation  has  received  or  becomes  entitled 
to  receive  for  services  rendered  during  a  given  period,  the  return  accru- 
ing during  the  period  upon  investments,  and  the  disbursements  and 
obligations  incurred  that  affect  the  disposition  of  the  amounts  so  re- 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  31 

ceived  or  aeerued.  The  follo\\  iim  accounts  make  up  the  income  account 
statement  and  should  lie  closed  into  the  Inn  me  Account  at  the  close  of 
the  year  or  other  fiscal  period. 

101.  OPERATING  REVENUES: 

Include  in  this  account  the  total  operating  revenues  of  the  corpora- 
tion for  the  period  covered  by  the  income  statement.  See  Accounts 
R-l  to  R-18,  inclusive,  under  "Operating  Revenues." 

102.  OPERATING  EXPENSES: 

Include  in  this  account  the  total  expenses  of  the  corporation  for  the 
period  covered  by  the  income  statement.  (See  Accounts  E-l  to  E-93, 
inclusive,  under  "Operating  Expenses.") 

103.  UNCOLLECTIBLE  ELECTRIC  BILLS: 

Charge  to  this  account  (and  credit  the  account  receivable  in  which 
heretofore  carried)  the  amount  of  any  account  for  electric  services 
which,  after  a  reasonably  diligent  effort  to  collect,  has  proved  impracti- 
cable of  collection.  This  account  includes  only  uncollectible  bills  for 
amounts  which  have  been  treated  as  operating  revenues;  other  uncol- 
lectible bills  should  be  charged  to  Account  No.  105-G,  "Uncollectible 
Non-operating  Revenues;"  or  to  "Corporate  Surplus  or  Deficit"  ac- 
count, as  may  be  appropriate. 

104.  NON-OPERATING  REVENUES: 

A.  Rent   Accrued   from   Lease   of  Electric   Plant.      Credit  to   this 
account  monthly,  as  they  accrue,  all  revenues  from  the  corporation's 
interests  in  electric  plant  or  equipment  held  by  others  under  some  form 
of  lease  whereby  it  surrenders  possession  of  such  property. 

This  account  is  intended  to  cover  only  rents  receivable  for  the  use 
of  electric  plants  or  operating  units  held  as  a  whole  under  some  form 
of  lease. 

B.  Miscellaneous  Bent  Revenues.     Credit  to  this  account  monthly 
the  revenues  accruing  to  the  corporation  as  a  return  upon  rented  prop- 
erty other  than  electric  plant  and  equipment  held  by  others  under 
lease,  as  provided  for  in  the  preceding  account. 

C.  Interest  and  Dividend  Revenues.    Credit  to  this  account  monthly 
all  revenues  accruing  to  the  corporation,  not  retained  in  specific  sink- 
ing or  other  revenue  funds,  from  interest  upon  all  its  bank  balances, 
special  deposits,  and  other  assets,  when  such  interest  is  a  liability  of 
solvent  concerns  or  individuals,  and  from  dividends  declared  or  guar- 
anteed by  solvent  concerns  upon  stocks  held  by  the  corporation.     No 
interest  or  dividends  upon  securities  issued  or  assumed  by  the  account- 
ing corporation  shall  be  credited  to  this  account  nor  to  any  other 
revenue  account, 


CATION   OF   ACCOTNTS.   KI.EOTRIC   CORPORATION^ 

('hiss  A  corporations  will  subdivide  the  revenues  included  herein  and 
keep  separate  accounts  for — 

a.  Interest  Revenues  on  Funded  Del>1   owned. 

b.  Miscellaneous  Interest  Revenues. 

c.  Dividend  Revenues. 

D.  Sinking    and    Otli<  r    I!i*<rr<    Fuml    .  l<  r/v  linns.     Credit    to    this 
account  and  charge  the  appropriate  fund  or  its  trustee  monthly  the 
revenues  accruing  from  securities  and  other  assets  in  the  hands  of  trus- 
tees or  specifically  set  aside  for  sinking  and  other  special  funds,  when 
the  revenues  are  retained  as  a  part  of  the  funds.     Such  revenues  may 
include    appropriations   equal    to    interest    upon    securities    issued   or 
assumed   by    the    accounting    corporation    where    such    securities    are 
acquired  through  the  operation  of  a  sinking  or  other  reserve  fund. 

NOTE. — If  the  assets  of  a  fund  are  to  be  represented  by  a  reserve  from  surplus. 
concurrent  entries  should  be  made  charging  Account  No.  113,  "Sinking  Fund  Appro- 
priations." or  Account  No.  114— E,  "Appropriations  to  Reserves."  crediting  Account 
No.  34,  "Reserves  Invested  in  Sinking  Funds,"  or  No.  35,  "Other  Reserves  from 
Income  or  Surplus,"  as  may  be  appropriate. 

E.  Profits  from  Operations  of  Others.    Whenever  in  accordance  with 
the  terms  of  any  contract  the  corporation  is  entitled  to  participate  in 
the  profits  from  operations  of  others,  all  revenues  accruing  to  the  cor- 
poration from  such  source  shall  be  credited  to  this  account. 

F.  Miscellaneous  Non-operating  Revenues.    Credit  to  this  account  all 
non-operating  revenues  not  provided  for  in  the  foivii'oini:  accounts. 

105.  NON-OPERATING  REVENUE  DEDUCTIONS: 

A.  Kent  Expense.     Charge  to  this  account  all   expenses  arising   in 
connection  with  the  procuring  of  revenues  from  rented  property,  such 
as  the  cost  of  negotiating  contracts,  advertising  for  tenants,  fees  paid 
conveyancers,   collectors'   commissions,   cost   of  enforcing  payment   of 
rent,  cost  of  ousting  tenants,  etc.     This  includes  the  expenses  accruing 
while  the  property  is  idle  and  awaiting  an  occupant ;  also  the  cost  of 
maintenance  of  the  property  when  such  cost  is  borne  by  the  corpora- 
tion.   Such  maintenance  includes  depreciation  as  well  as  reparable  wear 
and  tear.     It  does  not  include  taxes. 

B.  Interest  Expense.     Charge  to  this  account  all  expense  arising  in 
connection  with  procuring  interest  upon  investments,  such  as  expense 
of  collection,  expense  of  investigating  delay  in   payment,   expense  of 
enforcing  payment,  and  the  like.     It  does  not  include  taxes  on  such 
investments. 

C.  Diri'lt  ml   E.rfH  nxi .      Charge   to   this   account    all    expense   arising 
in  connection  with  the  collection  of  dividends  on  stocks  of  other  cor- 
porations,   including    expenses    incurred    in    the    investigation    of    the 
affairs  of  the  corporations  whose  stocks  are  held,  whether  for  the  pur- 
pose of  detecting  mismanagement  or  for  the  purpose  of  inducing  the 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  66 

declaration  of  dividends,  and  all  expense  connected  with  enforcing 
payment  of  dividends  when  declared.  It  does  not  include  taxes  on  such 
Investments. 

D.  01lur*'  ()i><  nttioxs  E.I'IH  n*c.  Charge  to.  this  account  the  cost  of 
negotiating  contracts  whereunder  the  corporation  is  to  participate 
in  the  profit  resulting  from  the  operations  of  others;  also  all  expense 
of  collecting  the  corporation's  proportion  of  such  profits,  and  all 
expense  connected  with  procuring  the  modification  or  the  dissolution 
of  any  such  contract. 

K.  Misci  llaiK  aits  Non-operating  K.>'i><  /w  .  Charge  to  this  account  all 
non-operating  expense  not  provided  for  in  the  foregoing  sub-accounts. 

F.  Noit-o/x  r<ih'n(j  T(t.r<*.  Charge  to  this  account  all  taxes  payable 
by  the  corporation  accrued  upon  Don-operating  property,  and  all  taxes 
assignable  to  non-operating  revenues. 

(r.  ('//<•<>/!« •IH>/t  Non-operating  Revenues,  When  any  non-operating 
revenues  are  judged  by  the  corporation  to  be  uncollectible,  the  amount 
thereof  shall  be  credited  to  the  account  in  which  theretofore  charged 
and  charged  to  this  account. 

106.  INTEREST  ACCRUED  ox  FUNDED  DEBT: 

Charge  to  this  account  monthly  all  interest  accrued  on  outstanding 
funded  debt  issued  or  assumed  b"y  the  corporation.  This  account  does 
not  include  interest  on  securities  held  by  the  corporation  in  its  treasury, 
in  sinking  or  other  reserve  funds,  or  pledged  as  collateral. 

NOTE  A. — The  amount  charged  to  this  account  shall  be  concurrently  credited  to 
Account  No.  25,  "Interest  Accrued,"  to  which  account  shall  be  debited  payments 
made  on  account -of  interest. 

NOTE  B. — If  any  of  the  funded  debt  sivuiities  issued  or  assumed  by  the  corpora- 
tion are  held  in  its  sinking  or  otluT  reserve  funds  and  the  interest  on  such  funded 
debt  is  ;in  accretion  to  the  fund,  the  interest  on  such  securities  shall  no  be  charged 
to  this  account  but  an  amount  equal  to  the  interest  on  the  fvinded  debt  so  held  shall 
lie  charged  to  Account  No.  113.  "Sinking  Fund  Appropriations."  This  does  not  apply 
to  securities  in  funds  held  in  trust  by  the  corporation  ;  such  as  employees'  pension 
funds  and  savings  funds. 

107.  OTHER  INTEREST  DEDUCTIONS: 

Charge  to  this  account  monthly  all  interest  accrued  on  receivers' 
certificates  and  on  interest-bearing  unfunded  obligations  of  the  cor- 
poration. 

NOTE  A. — The  amount  t  barged  to  tliis  account  shall  !><•  concurrently  credited  to 
Account  No.  -o.  "Interest  Accrued."  or  to  No.  21.  "Receivers'  Certificates,"  to  which 
accounts  shall  be  debited  payments  made  on  account  of  such  interest. 

108.  RENT  DEDUCTIONS: 

Include  in  this  account  monthly  all  amounts  accrued  against  the  cor- 
poration for  rents,  other  than  minor  rents  provided  for  elsewhere  as 
chargeable  to  operating  expenses.  It  includes  the  matters  provided  for 
in  the  following  sub-accounts: 

A.  Pent  for  Lease  of  Other  Electric  Plant.  Charge  to  this  account 
monthly  all  amounts  accrued  against  the  corporation  for  rent  of  electric 


34  CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

plant  and  equipment  which  it  holds   inidt-r  sume  form  of  lease  from 
another,  and  of  which  it  has  the  exclusive  possession. 

This  account  is  intended  to  cover  only  rents  payable  for  the  use  of 
electric  plants  or  operating  units  held  as  a  whole  under  some  form  of 
lease. 

B.  Bent  for  Conduits,  Poles  and  OUn  r  Su[>]x>rt«.     Charge  to  this 
account  rents  payable  accruing  for  the  use  of  ducts,  conduits,  or  sub- 
ways owned  by  others,  and  rents  for  the  use  of  poles,  fences,  or  build- 
ings as  supports  for  the  electric  lines  of  the  accounting  corporation. 

C.  Kent  for  Instruments  and  Equipment.     Chanie  to  this  account 
the  rents   payable  accruing   for  electric  instruments   and    equipment 
owned  by  others. 

This  does  not  include  amounts  paid  licensor  electric  corporations 
under  an  agreement  to  pay  a  certain  percentage  of  revenues  for  use 
of  instruments,  privilege  of  connection,  etc. 

D.  Miscellaneous  Rent   Deductions.     Charge  to  this   account   rents 
payable  accrued  not  provided  for  elsewhere. 

109.  AMORTIZATION  OF  DEBT  DISCOUNT  AND  EXPENSE  : 

Charge  to  this  account  at  or  before  the  close  of  any  fiscal  period  that 
proportion  of  the  unamortized  discount  and  expense  on  outstanding 
debt  which  is  applicable  to  the  period.  This  proportion  shall  be  deter- 
mined according  to  a  rule,  the  uniform  application  of  which  during  the 
interval  between  the  issue  and  the  maturity  of  any  debt  will  completely 
amortize  or  wipe  out  the  discount  at  which  such  debt  was  issued  and  the 
debt  expense  connected  therewith.  Such  amortization  may  at  the 
option  of  the  corporation  be  earlier  effected  by  charging  all  or  any 
portion  of  such  discount  and  debt  expense  to  Account  No.  114-0, 
"Other  Deductions  from  Surplus,"  immediately  upon  issue  of  the  debt 
or  thereafter. 

110.  AMORTIZATION  OF  PREMIUM  ON  DEBT — CR.  : 

Credit  this  account  at  or  after  the  close  of  any  fiscal  period  the  pro- 
portion of  the  premium  at  which  outstanding  debt  was  issued  which  is 
applicable  to  the  period.  This  proportion  shall  be  determined  according 
to  a  rule,  the  uniform  application  of  which  during  the  interval  between 
the  issue  and  the  maturity  of  any  debt  will  completely  amortize  or  wipe 
out  the  premium  at  which  such  debt  was  issued. 

111.  MISCELLANEOUS  DEDUCTIONS  FROM  INCO.MK: 

Include  in  this  account  the  matters  provided  for  in  thi-  follo\vinir 
sub-accounts : 

A.  Loss  on  Operations  of  Others.  "Whenever,  in  accordance  with  the 
terms  of  any  contract,  the  corporation  is  bound  to  contribute  toward 


CLASSIFICATION  OP  ACCOUNTS,  ELECTRIC  CORPORATIONS.  35 

reimbursement  of  the  losses  resulting  from  the  operations  of  others,  all 
liabilities  accruing  to  the  corporation  from  such  source  shall  be  charged 
to  this  account. 

1>.  Annii'lizdtion  of  Landed  Capital.  Charge  to  this  account  at  the 
close  of  any  fiscal  period  such  portion  of  the  original  money  cost  (esti- 
mated if  not  known)  of  landed  capital  as  is  necessary  to  cover  the  pro- 
portion of  the  life  thereof  expired  during  such  period. 

NOTE  A. — The  amounts  charged  to  this  account  shall  be  concurrently  credited  to 
Account  No.  30,  "Reserve  for  Amortization  of  Intangible  Capital." 

XCTK  B. — When  any  landed  capital  expires  or  is  otherwise  retired  from  service 
(as,  e.  g.,  through  sale)  the  capital  account  or  investment  account  (if  any)  originally 
charged  therewith  shall  be  credited  with  the  amount  originally  charged.  Account 
No.  30,  "Reserve  for  Amortization  of  Intangible  Capital,"  shall  be  debited  with  all 
amounts  theretofore  credited  to  such  account  in  respect  of  such  landed  capital  so 
going  out  of  service,  the  appropriate  account  shall  be  debited  with  the  proceeds  of 
sale  (if  any),  and  any  ner-essary  adjustment  shall  be  made  through  the  "Corporate 
Surplus  or  Deficit"  n< 

C.  Other  Couii'fii-i  mil  1)<  <1  iict'mnx  fro, n  In«>,n<.  Charge  to  this  ac- 
count all  deductions  fn;m  UTOSS  income  which  are  in  the  nature  of  fixed 
charges  and  not  provided  for  otherwise,  such  as  those  required  by  the 
terms  of  some  contract,  agreement,  charter  provision,  law,  or  ordinance. 
Such  deductions  should  not  include  any  appropriations  or  dispositions 
of  income  that  rest  solely  in  the  discretion  of  the  accounting  corporation. 

NOTE. — Payments  to  sinking  funds  shall  not  be  charged  to  this  account  but  shall 
be  included  in  Account  No.  113,  "Sinking  Fund  Appropriations." 

CORPORATE  SURPLUS  OR  DEFICIT  ACCOUNT. 
CORPORATE  SURPLUS  OR  DEFICIT  ACCOUNT  DEFINED  : 

This  account  or  summary  is  the  connecting  link  between  the  income 
account  and  the  balance  sheet.  It  summarizes  the  changes  in  the  cor- 
porate surplus  or  deficit  during  a  given  fiscal  period  resulting  from  the 
business  transactions  during  that  period  as  well  as  those  effected  by 
any  disposition  of  net  profits  made  solely  at  the  option  of  the  corpora- 
tion, by  accounting  adjustments  not  properly  attributable  to  the  period, 
or  by  miscellaneous  losses  or  gains  not  provided  for  elsewhere. 

To  this  account  should  be  carried  the  net  balance  of  the  accounts 
forming  the  Income  account,  and  in  it  should  be  summarized  all 
optional  appropriations  (including  dividends)  ;  miscellaneous  adjust- 
ments due  to  errors  in  accounting  in  prior  fiscal  periods;  profits  from 
the  sale  of  securities  or  other  property;  losses  upon  property  sold  or 
otherwise  retired  and  not  covered  by  reserves,  and  unusual  losses  and 
gains  of  like  nature.  For  these  matters  the  following  accounts  are 
provided ;  their  net  balance  added  to  the  net  balance  from  the  Income 
account  should  show  the  net  surplus  or  deficit  on  the  date  of  the  balance 
sheet. 


36  CLASSIFICATION  OP  ACCOUNTS.  ELECTRIC  CORPORATION >. 

112.  DIVIDENDS  ON  OUTSTANDING  STOCK  : 

When  any  dividend  is  declared  upon  any  outstanding  stocks  of  the 
corporation,  the  amount  of  such  dividend  shall  thereupon  be  charged 
to  this  account.  All  entries  to  this  account  shall  show  the  amount  of 
stock  upon  which  the  dividend  is  declared  as  well  as  the  amount  thereof. 
If  the  dividend  is  payable  in  anything  other  than  money,  such  thing 
shall  be  described  in  the  entry  with  sufficient  particularity  to  identify 
it,  and  the  actual  money  value  thereof  shall  lie  stated  as  the  amount  of 
the  dividend. 

When  any  dividend  is  declared  upon  the  stocks  of  the  corporation 
owned  by  or  held  in  behalf  of  the  corporation,  the  amount  of  such 
dividend  thereon  shall  be  credited  to  this  account.  Entries  of  credits 
to  this  account  shall  be  made  with  the  same  degree  of  particularity  as 
is  prescribed  in  the  preceding  paragraph. 

113.  SINKING  FUND  APPROPRIATIONS: 

Charge  to  this  account  all  appropriations  to  sinking  funds  and  accre- 
tions to  such  funds  on  account  of  income  from  previous  investments. 
Such  appropriations  should  include:  (1)  direct  payments;  c2)  sums 
equal  to  the  interest  or  dividends  on  securities  issued  or  assumed  by 
the  corporation  and  held  in  sinking  funds;  (3)  income  from  invest- 
ments of  sinking  funds  other  than  securities  issued  or  assumed;  (4)  in- 
come from  cash  or  special  deposits  held  by  trustees  of  sinking  funds. 
All  earnings  of  sinking  funds  and  contributions  to  such  funds  shall  be 
included  in  this  account  whether  such  contributions  are  made  at  the 
option  of  the  corporation  or  are  required  by  the  provisions  of  mort- 
gages, deeds  of  trust,  or  other  contracts. 

114.  MISCELLANEOUS  DEDUCTIONS  FROM  SURPLUS  : 

A.  Expenses  Unprovided  for  Elsewhere.     Charge  to  this  account  all 
expenses   not   chargeable    as   part   of   operating   expenses    or   of   non- 
operating  expenses,  such  as  fines  levied  on  the  corporation  for  violation 
of  law,  for  misfeasance,  for  non-feasance,  etc.,  fines  levied  on  directors. 
officers,   and  other  employees  of  the  corporation  and  assumed   by   it. 
donations  to  funds,  to  churches  and  other  associations,  and  other  like 
expenses  and  outgoes. 

B.  Realized  Depreciation  X<>!  (Covered  by  Reserve*.     Charge  to  this 
account  the  realized  depreciation   (that  is,  the  difference  between  the 
original  cost  and  the  salvage,  if  any),  on  tangible  capital  retired,  when 
such  depreciation  has  not  been  provided   for  through   a   depreciation 
reserve.     This  includes  such  portion  of  the  realized   depreciation   on 
any  physical  property  which  was  installed  prior  to  the  creation  of  the 
reserve  for  accrued  depreciation  as  is  due  to  life  in  service  before  that 
date;   this  portion  may  be  estimated  on    the  basis  of  the   proportion 


CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS.  37 

which  the  life  in  service  of  the  property  in  question  prior  to  the  estab- 
lishment of  the  reserve  bears  to  its  entire  life  in  service. 

C.  Amortization  Unprovided  for  Elsewhere.     Charge  to  this  account 
when  any  intangible  property  expires  or  is  relinquished,  such  portion 
of  its  cost  as  lias  not  'been  previously  written  off  or  is  not  covered  by 
Account  No.  30.  "Reserve  for  Amortization  of  Intangible  Capital." 
Charge  also  to  this  account  all  optional  amortization,  such  as  that  of 
organization  expenses,  and  assets,  carried  in  Account  No.  C-4.  "Other 
Intangible  Capital." 

D.  Gift*  to  Ci>itfrt>1l«I  Cnrpin-atifms.     Charge  to  this  account  all  gifts 
made  by  the  corporation  to  its  controlled  corporations,  also  such  por- 
tions of  all  advances  thereto  as  are  not  carried  as  assets. 

E.  Appropriations  l»  AVxv/T'x.     Chaise  to  this  account  all  optional 
appropriations  to  reserves. 

F.  Of/it  /•  Appropriations  from  Surplus.     Charge  to  this  account  all 
optional  appropriations  made  by  the  corporation  and  not  provided  for 
elsewhere. 

-  NOTE. — A  complete  analysis  of  this  account  will  be  required  in  annual  reports  of 
corporations  to  the  Railroad  Commission. 

G.  Other  Deductions  from  Surplus.    Charge  to  this  account  all  deduc- 
tions from  surplus  made  to  extinguish  discount  on  stocks  outstanding, 
optional  amortization  of  debt  discount  and  expense,  deductions  because 
of  erroneous  accounting  in  prior  fiscal  periods,  and  all  other  deductions 
from  surplus  not  provided  for  elsewhere. 

NOTE. — A  complete  analysis  of  this  Account  will  be  required  in  annual  reports  of 
corporations  to  the  Railroad  Commission. 

115.  MISCELLANEOUS  ADDITIONS  TO  SURPLUS  : 

Credit  to  this  account  all  additions  to  surplus  due  to  erroneous 
accounting  in  previous  fiscal  periods,  bad  debts  collected  after  being 
written  off.  profits  arising  from  the  sale  of  securities  or  other  property, 
etc. 

OPERATING    REVENUES. 

Hi  r>  a  in  ill  fi  ni<l.  I>y  revenues,  as  the  word  is  used  herein,  are  meant 
all  amounts  of  money  which  the  corporation  receives  or  becomes  law- 
fully entitled  to  recover  for  services  rendered,  for  products  sold,  as 
<_TOSS  profits  on  merchandise  sold,  or  as  a  return  upon  its  property  (or 
interest  in  property).  Revenues  are  classified  as  OPERATING  REVENUES 

and   NON-OPERATING    REVENUES. 

Operating  I?>  r<  i/n<. v  <lipm<L  Operating  revenues  are  those  derived 
from  the  sale  of  products  and  merchandise  from  services  rendered, 
and  from  return  on  property  used  by  the  person  or  corporation  in  its 
own  operations. 


38  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

Non-operating  Revenues  defined.  Non-operating  revenues  are  those 
derived  as  a  return  upon  the  property  of  the  corporation  in  the  hands 
of  others  or  from  its  interests  in  property  in  the  hands  of  others.  They 
may  be  sub-classified  as  RENTS.  INTEREST.  DIVIDENDS,  and  MISCELLANEOUS. 

Revenue  Deductions  defined.    Revenue  deductions  include  EXPENSES. 

TAXES,  DEPRECIATION,  and  UNCOLLECTIBLE  BILLS. 
Operating   Revenues — Electric. 

R-l.  MUNICIPAL  STREET  LIGHTING — ARC'  : 

Credit  to  this  account  all  revenues  derived  firm  the  lighting  of 
streets,  roads,  parks,  pla/as.  etc.,  for  municipal  corporations  by  means 
of  arc  lamps. 

R-2.  MUNICIPAL  STREET  LIGHTING — INCANDESCENT: 

Credit  to  this  account  all  revenues  derived  from  the  lighting  of 
streets,  roads,  plazas,  etc.,  for  municipal  corporations  by  means  of  in- 
candescent lamps. 

NOTE. — In  case  municipal  street  lighting  is  supplied  on  meter  basis,  and  such 
7-egistration  is  not  separately  metered  so  as  to  show  the  revenue  derived  under  the 
two  foregoing  accounts,  the  amounts  may  be  apportioned  between  the  two  accounts 
on  the  relative  number  of  each  kind  of  lamps  on  the  circuit. 

R-3.  MUNICIPAL  LIGHTING — MISCELLANEOUS  : 

Credit  to  this  account  all  revenues  derived  from  lighting  municipal 
buildings,  docks,  wharves,  corporation  yards,  etc..  by  means  of  electric 
lamps  and  from  electric  energy  supplied  primarily  for  such  purpose  at 
lighting  rates. 

R-4.  MUNICIPAL  POWER: 

Credit  to  this  account  all  revenues  derived  from  municipal  corpora- 
tions for  electric  energy  supplied  for  the  production  of  heat  and  power. 
and  from  electric  energy  supplied  primarily  for  such  purposes  at  power 
or  special  rates.  (Do  not  include  power  for  street  railways,  s,  e 
Account  No.  R-9.) 

R-5.  COMMERCIAL  LIGHTING — FLAT  RATE: 

Credit  to  this  account  all  revenues  derived  from  consumers,  other 
than  municipal  corporations,  counties  and  states,  for  electric  lighting 
at  flat  rates  per  year,  per  month,  per  night,  per  hour  or  otln-r  time 
units,  or  on  any  basis  independent  of  the  quantity  of  energy  supplied. 

NOTE. — When  fan  motors,  irons,  and  other  minor  electric  appliances  (excluding 
electric  ranges  or  general  hot  water  heaters),  from  which  revenues  are  derived  at 
flat  rates,  are  attached  to  a  circuit,  the  prime  purpose  of  which  is  the  furnishing  of 
light,  the  revenue  derived  therefrom  shall  be  Included  in  this  account. 

R-6.  COMMERCIAL  LIGHTING  —  METKRED  : 

Credit  to  this  account  all  revenues  derived  from  consumers,  other 
than  municipal  corporations  for  measured  electric  cnercy  supplied  for 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  39 

electric  lighting-  where  the  total  revenue  is  dependent  on  the.  quantity 
of  energy  supplied. 

NOTE. — Where  any  electric  energy  flowing  through  any  meter  is  used  by  any  other 
consumer  than  a  municipal  corporation  for  both  arc  and  incandescent  lighting,  or  for 
lighting  and  incidentally  for  power  purposes,  such  as  running  fans,  sewing  machines, 
etc.,  the  revenue  derived  therefrom  shall  be  credited  to  this  account. 

R-7.  COMMERCIAL  POWER—FLAT  RATE: 

Credit  to  this  account  all  revenues  derived  from  all  consumers  other 
than  municipal,  railroad  and  other  electrical  corporations,  for  electrical 
energy  supplied  by  heat  or  power  at  special  flat  rates  per  year,  per 
month,  per  night,  per  hour  or  other  time  units,  or  on  any  basis  inde- 
pendent of  the  quantity  of  energy  supplied. 

R-8.  COMMERCIAL  POWER — METERED: 

Credit  to  this  account  all  revenues  derived  from  consumers,  except 
municipal,  railroad,  and  other  electrical  corporations,  for  measured 
electrical  energy  supplied  for  heat  or  power  at  special  heat  or  power 
rates,  where  the  total  revenue  is  dependent  on  the  quantity  of  energy 
supplied. 

R-9.  RAILWAY  POWER: 

Credit  to  this  account  all  revenue  derived  from  electric  energy  sold 
to  street  and  other  railroad  corporations  and  municipal  corporations 
for  the  propulsion  of  their  cars  and  for  other  purposes  incident  to  their 
railway  operations.  If  such  energy  is  incidentally  used  for  lighting 
also,  but  the  portion  used  for  lighting  is  not  separately  measured,  the 
revenues  therefrom  shall  be  included  in  this  account. 

R-10.  OTHER  ELECTRICAL  CORPORATIONS: 

Include  in  this  account  all  revenues  derived  from  the  electric  energy 
sold  to  other  electrical  corporations  to  be  by  them  distributed  over  their 
own  lines  to  consumers.  If  any  portion  of  such  energy  is  incidentally 
consumed  by  such  corporation  for  their  own  benefit,  whether  for  light, 
heat  or  power,  it  shall  be  included  herein  if  not  separately  measured, 
or  if  included  in  the  same  contract  with  that  which  is  distributed  by 
them  to  consumers. 

R-ll.  RENT  OF  METERS: 

Credit  to  this  account  all  revenues  derived  from  the  renting  of  meters, 
whether  for  use  in  municipal,  commercial  or  miscellaneous  service.  It 
is  not  the  intention  to  require  that  the  difference  between  energy  con- 
sumed and  minimum  rate  (when  consumption  at  regular  rate  is  less 
than  the  agreed  minimum  rate)  be  considered  as  meter  rent. 

R-12.  BREAKDOWN  SERVICE: 

Credit  to  this  account  all  revenues  derived  from  the  insurance  of  a 
supply  of  electric  energy  to  a  stipulated  amount  to  concerns  ordinarily 


40  CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

producing  their  own  or  procuring  it  from  other  sources  than  the  cor- 
poration acting  as  insurer. 

R-13.  JOINT  ELECTRIC  RENT  REVENUE  : 

When  any  corporation  engages  in  electric  operations  for  the  produc- 
tion of  some  of  its  product  for  the  benefit  of  another,  or  others,  under 
an  arrangement  for  apportioning  the  expense  upon  the  basis  of  tin- 
relative  amounts  of  benefit  to  the  several  participants  in  the  arrange- 
ment, if  such  arrangement  provides  for  the  receipt  by  the  corporation 
of  any  profit  or  return  upon  its  property,  such  profit  or  return  upon 
property  shall,  as  it  accrues,  be  credited  month  by  month  to  this  ac- 
count. Such  profit  or  return  must  be  over  and  above  any  provision  for 
wear  and  tear  and  depreciation  of  plant  involved  in  the  said  pro- 
duction, and  the  amount  thereof  must  be  as  provided  in  the  arrange- 
ment under  which  the  joint  production  occurs. 

R-14.  MISCELLANEOUS  ELECTRIC  REVENUES  : 

Credit  to  this  account  all  revenues  derived  from  consumers  other 
than  municipal  corporations  for  the  supply  of  electric  energy  and 
service  and  from  other  electric  corporations  not  includible  in  any  of 
the  foregoing  accounts,  such  as  temporary  lighting  for  carnivals,  cur- 
rent supplied  contractors  constructing  buildings,  etc. 

Other  Operating    Revenues. 

R-15.  RENT  OF  ELECTRIC  APPLIANCES: 

Credit  to  this  account  all  revenues  derived  from  the  letting  of  electric 
motors,  fans,  heating  appliances,  batteries,  lamps,  and  other  electric 
apparatus  and  appliances  (except  meters)  to  others  than  municipal 
corporations.  Where  the  contract  of  LETTING  names  only  a  single  con- 
sideration for  both  the  letting  and  maintenance  of  the  appliances  so 
let,  the  entire  revenue  shall  be  included  in  this  account. 

R-16.  ELECTRIC  MERCHANDISE  AND  JOBBING  REVENUE  : 

Credit  to  this  account  all  receipts  from  the  sale  of  electric  merchan- 
dise and  from  electric  jobbing.  Charge  to  this  account  the  cost  to  the 
accounting  corporation  of  electric  merchandise  sold;  such  cost  includes 
transportation  charges  paid  on  such  goods. 

Credit  also  to  this  account  the  profit  or  commission  accruing  to  the 
corporation  on  all  jobbing  work  performed  by  il  as  <t<i<  nt  un<l<  >•  a<i<  net/ 
contracts,  whereunder  it  undertakes  to  do  jobbing  work  for  another  for 
a  stipulated  profit  or  commission  upon  its  actual  expense  for  labor. 
materials  and  supplies. 

NOTE  A.— In  its  annual  report  to  the  Railroad  Commission,  tlio  reporting  corpora- 
tion will  be  required  i«  Mfdyze  the  credits  and  debits  to  tin's  account. 

NOTE  B. — This  account  does  not  include  receipt*  I'rom  the  sale  of  superseded 
equipment,  or  of  junk  or  other  scrap  or  salvage. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  41 

R-17.  SALE  OF  BY-PRODUCTS  : 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  ashes, 
cinders,  chemical  \vaste.  gas  producer  residuals,  and  other  by-products 
of  electric  operations. 

R-18.  STEAM  SALES  REVENUE: 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  steam 
produced  in  or  in  conjunction  with  the  electrical  department. 

OPERATING   EXPENSE  ACCOUNTS. 

OPERATING  EXPENSES  DEFINED: 

By  the  operating  expenses  of  a  corporation  are  meant  such  expenses 
as  are  necessary  to  the  maintenance  of  the  corporate  organization,  the 
rendering  of  services  required  or  authorized  by  law,  the  sale  of  mer- 
chandise, the  production  (including  herein  capital  consumed)  and  dis- 
position of  the  commodities  produced,  and  to  the  collection  of  the 
revenues  therefor.  Expenses  directly  incident  to  the  collection  of  non- 
operating  revenues  and  the  maintenance  of  the  property  from  which 
non-operating  revenues  are  derived  are  excluded  from  operating 
expenses. 

DEFINITIONS  OF  CERTAIN  TERMS  USED  IN  CONNECTION  WITH  EXPENSE 
ACCOUNTS  : 

Except  where  some  other  meaning  is  clearly  specified  in  the  defini- 
tions of  the  accounts,  the  following  words,  wherever  used  hereunder, 
have  the  meanings  below  stated : 

Cost  means  cash  or  money  cost,  and  not  price  based  on  a  term  of 
credit. 

Labor  means  human  services  of  whatever  character. 

Cost  of  labor  includes  wages,  salaries  and  fees  paid  to  persons  for 
their  services. 

Cost  of  materials  and  supplies  includes  all  specifically  assignable 
transportation  charges  incurred  in  obtaining  the  delivery  of  such 
materials  and  supplies  upon  the  premises  of  the  purchaser,  and  cost  of 
any  special  tests  made  thereon  prior  to  their  acceptance;  and  in  case 
the  accounting  person  or  corporation  desires,  it  may  include  a  suitable 
proportion  of  store  expenses  (when  the  materials  and  supplies  are 
passed  through  stores)  and  the  cost  of  further  transportation  to  the 
place  of  consumption,  and  a  suitable  proportion  of  the  expenses  of  the 
purchasing  department,  in  which  case  a  corresponding  credit  shall  be 
made  to  the  suitable  expense  account  as  hereinafter  provided. 

Cost  of  repairs,  when  made  by  the  accounting  person  or  corporation, 


42  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATION-. 

includes  cost. of  lal>nr  expended  and  material  consumed,  less  salvage. 
if  any. 

NOTE. — It  is  not  required  that  the  transportation  element  of  cost  shall  be  assigned 
with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of  material  or 
supply.  Where  a.  single  transportation  item  covers  a  multitude  of  things  the  portion 
of  expense  not  assigned  to  specific  things  should  be  charged  to  the  same  account 
that  store  expenses  are  charged  to. 

GENERAL  ACCOUNTS. 

PRODUCTION  EXPENSES. 

TRANSMISSION  EXPENSES. 

DISTRIBUTION  EXPENSES. 

COMMERCIAL  EXPENSES. 

GENERAL  AND  MISCELLANEOUS  EXPENSES. 

TAXES. 

DEPRECIATION,  ETC. 

Production   Expenses. 

E-l.  SUPERINTENDENCE: 

Charge  to  this  account  salaries  and  expenses  of  superintendents  and 

assistants,  chemists,  clerks,  janitors,  watchmen,  elevatormen.  and  also 
that  portion  of  the  salaries  and  expenses  of  the  engineering  staff  assign- 
able to  the  generating  plant. 

E-2.  WATER  COLLECTION  LABOR  AND  EXPENSES  : 

Charge  to  this  account  the  cost  of  patrolling  and  tending  all  reser- 
voirs, dams  and  headgates,  ditches,  pipe  lines,  flumes,  tunnels  and  fore- 
bays.  This  account  shall  include  all  labor  and  expenses,  cost  of  com- 
missary and  supplies,  livery,  feed,  etc.,  upkeep  of  furniture  and  fixtures 
m  camp  and  houses  occupied  by  ditch  tenders,  the  cleaning  of  channels, 
regulating  headgates  and  spillway,  raking  screens,  caulking  of  flumes, 
oiling  and  cleaning  air  vents  and  valves,  gauging  water,  and  .all  other 
expense  of  collecting  and  conveying  water  to  and  inclusive  of  forebays. 

E-3.  WATER  FOR  HYDRAULIC  POWER: 

Charge  to  this  account  the  cost  of  all  water  purchased  for  the  pur- 
pose of  operating  hydraulic  power  plants  in  the  electrical  department. 

E-4.  STEAM  GENERATION  LABOR: 

Charge  to  this  account  salaries  of  chief  engineer,  assistant  engineers. 
oilers,  wipers,  machinists,  water  tenders,  firemen,  coal  handlers,  boiler 
cleaners,  pump  feed  men,  and  labor  of  all  kinds  not  above  specified 
elsewhere,  in  and  about  the  premises  having  to  do  with  making  of  steam. 

E-5.  FUEL  FOR  STEAM  : 

Charge  to  this  account  the  cost  of  fuel,  whether  coal  or  oil,  used  under 
the  boilers  for  electric  generation,  at  the  cost  delivered  in  the  bunkers  or 
tanks. 

E-6.  STEAM  GENERATOR  SUPPLIES: 

Charge   to  this  account  the   cost   of  all  supplies,   tools,   etc.,   used 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  43 

specifically  in  the  steam  plant  which  are  consumed  in  operating  ex- 
penses, the  replacement  of  which  does  not  constitute  a  repair  or 
renewal ;  also  the  cost  of  repairs  of  such  tools.  This  includes  such 
matters  as  waste,  packing,  wipers,  gauge  glasses,  gauge  washers,  man- 
hole gaskets,  handhole  gaskets,  fire  room  tools,  steam  and  air  holes, 
bolts,  screws,  nails,  tools,  etc.  Also  include  in  this  account  the  cost  of 
feed  water  and  water  for  condensers ;  also  the  cost  of  boiler  compound. 

E-7.  STEAM  FROM  OTHER  SOURCES: 

Charge  to  this  account  the  cost  of  all  purchased  or  jointly  produced 
steam  consumed  in  the  power  plant  of  the  electric  department. 

XOTE. — In  ease  such  steam  is  jointly  produced,  f.  e.,  produced  by  another  person  or 
corporation  under  a  joint  arrangement  for  sharing  the  cost  of  production  in  propor- 
tion to  the  benefits  to  the  several  participants,  the  charge  to  this  account  may  include 
a  proportion  to  CG\>T  depreciation  of  plant  employed  as  well  as  a  proportion  of  direct 
expense,  but  it  must  not  include  any  allowance  or  return  upon  the  cost  or  value 
of  the  plant,  such  allowance  or  return  upon  property  being  chargeable  to  Account 
No.  108,  "Other  Rent  Deductions." 

E-8.  PRODUCER  GAS  LABOR: 

Charge  to  this  account  the  cost  of  all  labor  in  connection  with  gas 
generating  apparatus  and  devices,  including  gas  makers  and  their 
assistants,  pump  men.  and  all  other  labor  having  to  do  with  the  produc- 
tion of  power  gas. 

E-9.  FUEL  FOR  GAS: 

Charge  to  this  account  the  cost  of  fuel  used  for  generating  producer 
gas. 

E-10.  PRODUCER  GAS  SUPPLIES: 

Charge  to  this  account  the  cost  of  all  supplies,  tools,  etc.,  used  spe- 
cifically in  the  production  of  gas  for  power  purposes  of  electric 
department;  also  charge  to  this  account  the  cost  of  water,  repairs  of 
tools  where  the  replacement  does  not  constitute  a  repair  or  renewal,  etc. 

E-ll.  POWER  GAS  FROM  OTHER  SOURCES: 

Charge  to  this  account  the  cost  of  all  gas  consumed  in  the  gas  power 
plants  of  electric  generating  stations,  but  not  produced  in  the  electric 
department ;  this  includes  the  cost  of  gas  produced  for  the  corporation 
by  another  corporation  under  any  joint  agreement  for  the  sharing  of 
the  expense  (upon  the  basis  of  the  relative  amount  of  benefit  to  the 
several  participants),  inclusive  of  provision  in  such  expense  for 
depreciation  of  plant,  but  exclusive  of  allowance  for  profit  or  return 
upon  the  value  of  property  used  in  such  production. 

E-12.  ELECTRIC  PLANT  LABOR: 

Charge  to  this  account  the  cost  of  all  labor  in  connection  with  the 
electric  generating  apparatus  and  devices,  beginning  with  the  prime 


44  CLASSIFICATION  OF  ACCOUNTS.  ELKCTRIC  CORPORATIONS. 

mover  direct  connected  or  belted  to  the  generators,  and  including  the 
switchboard,  feeder  terminal  board  and  to  where  the  electric  current 
arrives  at  bus  bars  or  the  transmission  or  distribution  system. 

E-13.  ELECTRIC  PLANT  SUPPLIES: 

Charge  to  this  account  the  cost  of  all  supplies,  tools,  etc..  used  specifi- 
cally in  electric  plants,  such  as  waste,  lubricants,  packing,  graphite,  etc. 

E-14.  ELECTRIC  ENERGY  FROM  OTHER  SOURCES  : 

Charge  to  this  account  the  cost,  at  the  point  of  delivery  to  the 
corporation,  of  all  electric  energy  purchased  or  produced  for  the  cor- 
poration by  another  corporation  under  any  joint  arrangement  for  the 
sharing  of  the  expense  (upon  the  basis  of  the  relative  amounts  of  bene- 
fit derived  by  the  several  participants),  inclusive  of  provision  in  such 
expense  for  depreciation  of  plant,  but  exclusive  of  allowance  for  profit 
or  return  upon  the  value  of  the  property  used  in  such  production. 

E-15.  GENERAL  LABOR  AND  SUPPLIES: 

Charge  to  this  account  the  cost  of  all  material  and  labor  and  expenses 
not  incorporated  in  the  foregoing  accounts,  or  supplies  for  general 
station  purposes.  This  account  includes  labor  of  cooks  and  waiters, 
boarding  house  attendants,  watchmen,  sweepers,  etc.;  also  commissary 
supplies,  brooms,  house  and  club  room  furniture,  fixtures,  etc. 

NOTE. — If  the  boarding  house  furnished  any  service  to  labor  in  other  departments. 
proportionate  expense,  based  upon  the  number  of  meals  furnished,  is  to  !><>  transferred 
to  and  shown  to  the  appropriate  sub-accounts.  Cash  received  for  any  transient 
services  should  be  credited  to  this  account. 

E-16.  REPAIRS  TO  DAMS,  WATER  CONDUITS  AND  PENSTOCKS: 

Charge  to  this  account  the  cost  of  repairing  all  reservoirs,  dams, 
canals,  aqueducts  and  penstocks  devoted  to  the  utilization  of  water 
power  and  the  delivery  of  water  to  the  headgate  of  the  turbine  or 
water  wheel ;  also  that  of  all  wasteways  from  the  outlet  of  the  draft 
tube  to  the  final  point  of  discharge.  This  includes  repairs  to  all  gates. 
valves  and  other  accessories  of  such  reservoirs,  dams,  etc. ;  also  waste- 
ways,  sluices,  forebays,  grids,  walls,  fences,  etc.,  for  the  protection  of 
such  canals  and  penstocks,  and  all  trestles  and  other  supporting  struc- 
tures; also  all  viaducts,  bridges,  foot-bridges,  etc.,  over  and  accessary 
to  and  necessitated  by  such  canals,  aqueducts  and  penstocks;  also  cost 
of  repairing  all  buildinus  in  connection  therewith,  such  as  dwellings. 
stables,  cookhouses,  clubhouses,  etc.:  also  water  wells  and  pumps. 

E-17.  REPAIRS  TO  I'OWKR  PLANT  l>riu>iN<;s  AND  •:  IKNKRAI.  STRITTTRKS  : 
Charge  to  this  account  the  cost  of  repairing  buildings  to  be  used  for 
housing  power  generating  plants.  This  account  includes  cost  of  repair- 
ing permanent  foundations,  drainage,  gas  and  water  pipes  and  connec- 
tions, grounds,  and  furniture  and  fixtures  when  permanently  attached 
to  and  made  a  part  of  the  buildings:  also  cost  of  repairing  all  necessary 


CLASSIFICATION  OP  ACCOt'XTS,  ELECTRIC  CORPORATIONS.  45 

buildings  in  connection  therewith  such  as  dwellings,  stables,  cookhouses, 
clubhouses,  etc.;  also  water  wells  and  pumps. 

E-18.  KEPAIRS  TO  HYDRAULIC   POWER   PLANT  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  water  wheels  and 
turbines  devoted  to  the  generation  of  electrical  energy,  including 
foundations  and  settings  of  such  hydraulic  equipment,  their  governors 
and  all  apparatus  appurtenant  thereto  from  the  headgates  and  gov- 
ernors to  wasteways.  Include  also  the  cost  of  repairing  all  electric  gen- 
erating apparatus  driven  by  hydraulic  power  and  rotaries  and  motor 
generating  sets,  exciters,  etc.,  when  not  installed  in  connection  with 
transmission  systems,  together  with  the  specially  provided  foundations 
and  settings.  Include  in  this  account  also  the  cost  of  repairing  all 
electric  equipment  of  power  plants,  embracing  bus  bars,  station  switch- 
boards, and  such  equipment  as  circuit  breakers,  switches,  meters  and 
their  settings,  headgate  motors  and  other  electric  apparatus.  Eepairs 
to  belts,  pulleys,  shafting  and  other  power  transmission  apparatus  in 
the  hydraulic  power  plant  will  also  be  included  in  this  account. 

E-19.  REPAIRS  TO  BOILERS.  FURNACES  AND  ACCESSORIES: 

Charge  to  this  account  the  cost  of  repairing  all  furnaces,  fuel  oil 
tanks  and  pipe  lines,  boilers  and  boiler  apparatus  and  accessories 
devoted  to  the  production  of  steam  for  use  in  generating  electrical 
energy.  This  includes  boilers  and  valves  thereto  attached,  appurtenant 
furnaces  and  grates,  and  flues  leading  to  smokestacks  and  chimneys, 
find  the  specially  provided  foundations  and  settings  of  such  boilers  and 
appurtenances;  also  iron  smokestacks.  It  also  includes  mechanical 
stokers  and  other  like  apparatus  for  regulating  the  supply  of  fuel,  etc., 
feed  and  hot  water  heaters  and  economizers,  injectors,  filters,  feed 
pumps,  blower  pumps,  coal  conveyors,  ash  conveyors,  water  pipes,  steam 
traps,  drains  and  separators,  and  pipes  for  conducting  steam  from  the 
boiler  to  the  engine  or  the  gas  producers,  etc.  It  does  not  include 
repairs  to  steam  pipes  whose  primary  purpose  is  the  heating  of 
buildings. 

E-20.  REPAIRS  TO  STEAM  POWER  PLANT  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  steam  engines  devoted 
to  the  production  of  electrical  energy.  This  includes  the  specially  pro- 
vided foundations  and  settings  for  such  engines.  The  engine,  whether 
reciprocating  or  rotary  (such  as  steam  turbines),  shall  be  considered  1o 
include  the  throttle  or  inlet  valve  and  the  governor;  also  condensers,  air 
and  circulating  pumps,  lubricating  system,  etc.,  but  not  the  steam  pipe 
from  the  boiler.  Where  the  electric  rotor  is  mounted  on  the  engine 
shaft,  the  shaft  will  be  considered  a  part  of  the  steam  engine  and  the 
electric  rotor  will  be  considered  a  part  of  the  electrical  equipment ;  also 


46  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

the  cost  of  repairing  all  electric  generating  apparatus  driven  by  engines 
operated  by  steam;  and  the  rotaries  and  motor  generator  sets,  exciters. 
etc.,  when  not  installed  in  connection  with  transmission  system.  This 
includes  the  specially  provided  foundations  and  settings  of  such  appa- 
ratus; also  the  cost  of  repairing  all  other  electric  equipment  of  gener- 
ating stations,  such  as  station  switchboards,  and  their  equipment  and 
their  foundations  and  settings;  also  pumps,  motors,  air  compressor 
motors,  etc. 

E-21.  REPAIRS  TO  GAS  PRODUCERS  AND  ACCESSORIES: 

Charge  to  this  account  the  cost  of  repairing  producers  and  accessories 
devoted  to  the  production  of  gas  for  the  purposes  of  operating  electric 
generators,  including  the  cost  of  repairing  specially  provided  founda- 
tions and  settings  for  such  producers  and  accessories;  also  include  the 
cost  of  repairing  producers,  economizers,  regenerators,  vaporizers,  strain 
injectors,  scrubbers,  exhauster  outfits,  seals,  specially  provided  boilers 
and  pumps,  flues  and  piping,  blower  engines,  pipes  for  the  conduction 
of  gas  from  such  producers  to  holders  and  gas  engines,  holders  for 
producer  gas,  exhaust  pipes  from  gas  engines,  etc.  Do  not  include  cost 
of  repairing  pipes  whose  primary  purpose  is  the  heating  of  buildings, 
nor  power  transmission  apparatus,  or  water  pipes,  steam  pipes,  water 
pumps  or  inspirators. 

E-22.  REPAIRS  TO  GAS  POWER  PLANT  EQUIPMENT  : 

Charge  to  this  account  the  cost  of  repairing  all  gas  engines  devoted  to 
the  production  of  electrical  energy,  including  the  specially  provided 
foundations  and  settings  of  such  apparatus.  The  engine  includes  the 
inlet  valve,  governor  and  ignition  starting  apparatus,  but  not  the  pipe 
leading  from  the  gas  holder.  Where  the  electric  rotor  is  mounted  on 
the  engine  shaft,  the  shaft  will  be  considered  a  part  of  the  engine  and 
the  rotor  will  be  considered  a  part  of  the  electrical  equipment.  Include 
also  the  cost  of  repairing  all  electric  generating  apparatus  driven  bv 
engines  operated  by  gas;  and  rotaries,  motor-generator  sets,  exciters. 
etc.,  when  not  installed  in  connection  with  transmission  syMeins.  This 
includes  cost  of  repairing  the  specially  provided  foundations  and 
settings  of  such  apparatus;  also  the  cost  of  repairing  all  other  electric 
equipment  of  generating  stations,  such  as  bus  bars,  station  switchboards 
and  equipment,  and  their  foundations  and  settings;  also  pump  motors, 
air  compressor  motors,  etc. 
E-23.  REPAIRS  TO  MiscKi.i.ANKors  PKonrrnoN  KQCIPMKNT  : 

( 'hari>'e  to  this  account  the  cost  of  repairing  all  miscellaneous  equip- 
ment used  in  the  production  of  electrical  energy  which  is  not  iueludible 
in  any  of  the  foregoing  accounts.  This  includes  repairs  to  tools  and 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  47 

appliances  (working  stock  only),  wagons,  harness,  autos,  motorcycles, 
bicycles,  furniture  and  fixtures,  roads,  trestles,  bridges,  etc.,  where 
specifically  used  in  the  production  of  electrical  energy. 

NOTE. — Where  any  items  of  miscellaneous  power  plant  equipment  are  jointly  used 
with  transmission,  distribution  or  other  departments,  the  cost  of  such  repairs  shali  be 
included  in  appropriate  sub-accounts  under  "General  Expense." 

Transmission    Expenses. 

E-24.  SUPERINTENDENCE: 

Charge  to  this  account  the  salaries  and  expenses  of  superintendents 
and  assistants,  chemists,  clerks,  janitors,  watchmen,  elevator  men;  also 
portions  of  the  salaries  and  expenses  of  the  engineering  staff. 

E-25.  INSPECTING  AND  PATROLLING: 

Charge  to  this  account  all  labor  and  expense  of  patrolmen  engaged  in 
inspecting  and  patrolling  the  transmission  system,  including  the  testing 
of  the  lines,  and  repairs  of  minor  character  made  by  patrolmen. 

E-26.  SUB-STATION  LABOR: 

Charge  to  this  account  the  cost  of  all  labor  employed  in  superintend- 
ing and  operating  transmission  sub-stations,  including  not  only  that  of 
regulators,  brushmen,  and  others  engaged  in  operating  the  electric 
apparatus,  but  also  that  of  clerks,  janitors,  watchmen,  etc. 

E-27.  SUB-STATION  SUPPLIES  AND  EXPENSES: 

Charge  to  this  account  the  cost  of  supplies  consumed  and  expenses 
incurred  in  connection  with  the  operation  of  transmission  sub-stations, 
such  as  telephone  rents,  light,  heat,  etc. 

E-28.  GENERAL  LABOR  AND  SUPPLIES: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended 
and  expenses  not  includible  in  the  foregoing  accounts,  inclusive  of  load 
dispatchers  and  assistants. 

E-29.  KEPAIRS  TO  OVERHEAD  TRANSMISSION  SYSTEM: 

Charge  to  this  account  the  cost  of  repairing  towers,  structures,  poles, 
cross-arms  and  insulator  pins ;  braces,  brackets  and  other  pole  fixtures ; 
guys  and  other  supports  for  holding  towers,  structures  and  poles  in 
position  and  the  cost  of  repairing  cables,  wires,  insulators  and  insulating 
material. 
E-30.  REPAIRS  TO  UNDERGROUND  TRANSMISSION  SYSTEM  : 

Charge  to  this  account  the  cost  of  repairing  conduits  required  for 
underground  wires  and  cables,  including  manholes,  ducts,  pipes,  sewer 
connections,  sewer  traps,  and  all  material  necessary  for  the  completion 
of  the  underground  conduit  system  devoted  to  the  protection  of  the 


48  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATION- 

transmission  systems;  also  the  cost  of  repairing  cables  and  insulating 
material. 

NOTE. — Where   underground   conduits   (airy    wires   of   disti  ibutiun   and    Irani 
service,   the  prime  purpose  for  which  the  installation  was  made  shall   d.-t.-rniine  their 
inclusion   in   transmission   or   distribution   system. 

E-31.  REPAIRS  TO  SITE-STATION  Bun. DISCS  .\\n  <;KXKKAI.  STRUCTURES: 
Charge  to  this  account  the  cost  of  repairing  buildings  to  be  used  for 
transmission  sub-station  purposes,  including  permanent  foundations, 
drainage,  gas  and  water  pipes  and  connections,  grading  grounds,  and 
furniture  and  fixtures  when  permanently  attached  to  and  made  a  part 
<  f  the  building.  Include  also  the  cost  of  repairing  all  necessary  build- 
ings in  connection  therewith,  such  as  dwellings,  stables,  cookhouses, 
clubhouses,  etc. ;  also  water  wells  and  pumps. 

E-32.  REPAIRS  TO  SUB-STATION  EQUIPMENT  : 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  sub- 
stations, such  equipment  to  include  electric  machinery  and  apparatus 
transformers,  storage  batteries,  furnaces,  boilers,  stoves,  elevators,  etc., 
permanently  assigned  to  such  stations,  but  not  affixed  to  the  structures 
thereof.  Do  not  include  repairs  to  laboratory  instruments  and  appar- 
atus not  permanently  assigned  thereto,  nor  tools  only  temporarily 
assigned  to  such  sub-stations. 

NOTE. — Do  not  include  in  this  account  any  sub-station  equipment  devoted  to  the 
purposes  of  distribution  operations.  Repairs  to  step-up  transformers  and  sub-stati  m 
equipment  installed  in  power  houses  for  purposes  of  transmission  systems  shall  he 
included  in  this  account. 

E-33.  REPAIRS  TO  MISCELLANEOUS  TRANSMISSION  EQUIPMENT  : 

Charge  to  this  account  the  cost  of  repairing  all  miscellaneous  equip- 
ment used  in  the  transmission  of  electrical  energy  which  is  not  in- 
cludible  in  any  of  the  foregoing  accounts.  This  includes  repairs  to  tools 
and  appliances  (working  stock  only),  wagons,  harness,  autos.  motor- 
cycles, bicycles,  furniture  and  fixtures,  roads,  trestles,  bridges,  etc.. 
where  used  specifically  in  the  transmission  of  electrical  energy. 

NOTE. — Where  any  items  of  miscellaneous  sub-station  equipment  are  jointly  ust-d 
with  production,  distribution,  or  other  departments,  the  cost  of  repairing  such  items 
shall  be  included  in  the  appropriate  sub-accounts  under  "General  Expenses." 

Distribution    Expenses. 

E-34.  SUPERINTENDENCE: 

Charge  to  this  account  the  cost  of  all  labor  expended  for  general 
superintendence.  This  account  should  include  livery  and  stable  ex- 
pense, personal  expenses,  etc. 

E-35.  SUB-STATION  LABOR: 

Charge  to  this  account  the  cost  of  all  labor  employed  in  superintend- 
ing and  operating  distribution  sub-stations,  including  not  only  that  of 
i  emulators,  brushmen.  and  ethers  engaged  in  operating  the  electric 
apparatus,  but  also  that  of  clerks,  janitors,  watchmen,  etc. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  40 

E-36.  SUB-STATION  SriMM.n>  AND   KXPENSES: 

Charge  to  this  account  the  cost  of  supplies  consumed  and  expenses 
incurred  in  eonnecti<.n  with  the  operation  of  distribution  sub-stations, 
such  as  telephone  rents,  light,  heat.  etc. 

E-37.  STORAGE  BATTERY  LABOR  : 

Charge  to  this  account  the  salaries  and  personal  expenses  of  superin- 
tendents, clerks,  and  battery  men,  including  inspectors  and  testers. 

E-38.  STORAGE  BATTERY  SUPPLIES  AND  EXPENSES: 

Charlie  to  this  account  the  cost  of  acid  and  distilled  water  in  cells, 
soda,  sponges,  brooms,  mops,  waste,  rags,  hydrometers,  thermometers, 
automatic  cell  fillers,  rubber  hose,  gloves,  shoes,  paint,  etc.,  and  brushes 
for  boosters  and  compensators;  also  include  in  this  account  the  cost  of 
renewing  worn-out  cells,  including  diaphragms,  negative  and  positive 
plates,  lead  in  strip,  spelter,  pails,  candles,  dry-boards,  tank  bands, 
sheet  lead,  glass  plates,  glass  covers,  hydrogen  generators,  jumpers, 
clamps,  lampblack,  etc. 

E-39.  SETTING  AND  REMOVING  TRANSFORMERS  AND  METERS  : 

Charge  to  this  account  the  cost  of  all  supplies  consumed  and  all 
expenses  incurred  in  connection  with  the  operation  of  service  trans- 
formers and  consumers'  meters.  This  includes  such  matters  as  setting 
and  removing  transformers  and  meters,  connecting  and  disconnecting 
services,  and  the  like. 

E-40.  INSPECTING  AND  PATROLLING: 

Charge  to  this  account  the  cost  of  patrolling,  testing,  etc.,  including 
minor  repairs  made  by  patrolmen  to  conductor  and  insulation  thereof 
in  the  distribution  system. 

E-41.  ELECTRIC  METER  OPERATIONS: 

Charge  to  this  account  the  salaries  and  expenses  of  superintendents 
and  clerks  in  the  meter  bureau,  also  that  portion  of  the  salaries  of  the 
engineering  staff  of  the  corporation  assignable  to  this  account ;  also  the 
cost  of  light,  heat,  ice  water,  and  other  supplies  and  expenses  in  con- 
nection with  the  meter-testing  bureau ;  and  the  cost  of  testing  meters  on 
consumers'  premises. 

E— 12.  COMMERCIAL  ARC  LABOR: 

Charge  to  this  account  the  cost  of  all  labor  employed  in  trimming 
and  inspecting  arc  lamps  on  private  consumers'  premises  and  in  munici- 
pal buildings. 

E-43.  COMMERCIAL  ARC  SUPPLIES  AND  REPAIRS  : 

Charge  to  this  account  the  cost  of  all  supplies  (such  as  carbons, 
globes,  etc.),  for  arc  lamps  on  private  consumers'  premises:  also  in- 


-)l>  CLASH  KK'ATIOX   OK   A( '( '(  M    NTS.   KI.KCTKit '   CORPORATION^. 

elude  in  lliis  aceoiinl  the  cost  of  keeping  in  repair  privale  consumers' 
arc  lamps  and  those  in  municipal  buildings;  including  sndi  matters  as 
setting  and  removing  lamps,  repairing  parts.  ch.mging  for  repairs  and 
adjustments,  and  testing  during  adjustment  and  after  repairs. 

E-44.  COMMERCIAL    INCANDESCENT    LAMP    INSTALLATIONS    AND    RE- 
NEWALS : 

Charge  to  this  account  the  cost  of  the  first  installation  of  incandescent 
lamps  on  consumers'  premises  (including  cartage  and  delivery  ex- 
penses), unless  consumer  is  charged  for  the  first  installation,  or  unless 
it  is  proper  to  charge  such  first  installation  to  capital  (see  Account 
No.  C-26)  ;  also  include  in  this  account  the  cost  of  renewing  incan- 
descent lamps  on  consumers'  premises  (including  cartage  and  delivery 
expenses)  and  cost  of  photometering  incandescent  lamps.  Credit  to 
this  account  any  rebate  received  from  the  return  of  stubs,  or  allowances 
relating  thereto. 

E-45.  INSPECTION  AND  REPAIRS  OF  CONSUMERS'  INSTALLATIONS: 

Charge  to  this  account  the  cost  of  inspection  of  consumers'  premises, 
including  such  matters  as  the  charge  for  municipal  certificates,  and 
that  portion  of  the  salaries  and  expenses  of  the  engineering  staff  or  of 
other  departments  than  the  distribution  department  in  technical  work 
properly  assignable  to  this  account.  Also  include  in  this  account  the 
cost  of  all  labor  and  material  furnished  to  consumers  for  inside  work 
without  special  charge,  including  such  matters  as  attention  to  com- 
plaints or  to  improving  the  character  of  the  service,  replacing  or  repair- 
ing wiring  fixtures  of  electric  appliances,  moving  appliances  from  place 
to  place  in  houses  and  reconnecting  the  same,  etc. 

E-46.  MUNICIPAL  STREET  ARC  LABOR: 

Charge  to  this  account  the  cost  of  labor  employed  in  trimming  ami 
inspecting  the  arc  lamps  of  the  municipal  street  lighting  system. 

E-47.  MUNICIPAL  STREET  ARC  SUPPLIES: 

Charge  to  this  account  the  cost  of  carbons,  globes,  etc..  for  the  arc 
lamps  of  the  municipal  street  lighting  system. 

E-48.  GENERAL  LABOR  AND  SUPPLIES: 

Charge  to  this  account  the  cost  of  all  materials  and  labor  expended. 
and  expenses,  not  includible  in  the  foregoing  accounts. 
E-49.  REPAIRS  TO  SUB-STATION  BUILDINGS  AND  GENERAL  STRUCTURES: 

Charge  to  this  account  the  cost  of  repairs  to  all  buildings  to  be  used 
for  distribution  sub-station  purposes,  including  excavation,  permanent 
foundations,  drainage,  gas  and  water  pipes  and  connections,  grading 


CLASSIFICATION"   OK   ACCOI'XTS,   KI.KCTKIC   CORPORATIONS.  51 

grounds,  and  furniture  and  iixfmvs  when  permanently  attached  to  and 
made  a  part  of  the  buildings:  also  the  cost  oi:'  repairing  all  necessary 
buildings  in  connection  therewith,  such  as  dwellings,  stables,  cook- 
houses,  clubhouses,  etc. ;  also  water  wells  and  pumps. 

NOTE. — No  charge  should  be  made  to  this  account  in  respect  of  a  power  plant 
building,  even  though  such  building  also  contains  sub-station  apparatus. 

E-50.  REPAIRS  TO  SUB-STATION  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  dis- 
tribution sub-stations.  Such  equipment  includes  electric  machinery  and 
apparatus,  transformers,  storage  batteries,  furnaces,  boilers,  stoves, 
elevators,  etc.,  permanently  assigned  to  such  stations,  but  not  affixed  to 
the  structures  thereof.  It  does  not  include  repairs  to  laboratory  in- 
struments and  apparatus  not  permanently  assigned  thereto,  nor  does  it 
include  tools  only  temporarily  assigned  to  such  stations. 

NOTE. — Include  under  this  account  repairs  to  all  transformers  and  sub-station 
equipment  installed  in  power  plant  buildings  for  purposes  of  distribution  department. 

E-51.  REPAIRS  TO  OVERHEAD  DISTRIBUTION  SYSTEM  : 

Charge  to  this  account  the  cost  of  repairs  to  towers,  structures,  poles, 
cross-arms  and  insulator  pins,- braces,  brackets,  and  other  pole  fixtures, 
guys  and  other  supports  for  holding  towers,  poles  and  structures  in 
position ;  and  all  labor  and  expenses  in  connection  with  the  repair  of 
pole  lines  or  structures  for  carrying  the  distribution  system,  and  the 
cost  of  repairing  main-line  conductors  and  feeders,  cables,  wires,  insula- 
tors, and  insulating  material. 

NOTE. — If  the  poles  and  fixtures  are  used  jointly  between  transmission  and  dis- 
tribution systems,  the  prime  purpose  for  which  the  pole  line  is  erected  shall  determine 
the  account  to  be  charged. 

E-52.  REPAIRS  TO  UNDERGROUND  DISTRIBUTION  SYSTEM  : 

Charge  to  this  account  the  cost  of  repairing  conduits  required  for  the 
underground  wires  and  cables,  including  manholes,  ducts  and  pipes, 
sewer  connections,  sewer  traps,  and  the  cost  of  repairing  cables  and 
insulating  material. 

NOTE. — ]f  the  ducts  of  the  underground  system  are  occupied  by  wires  of  the  trans- 
mission system,  the  prime  purpose  of  which  is  for  the  purposes  of  distribution  system, 
the  total  cost  of  repairing  such  conduits  shall  be  charged  to  this  account. 

E-53.  REPAIRS  TO  LINE  TRANSFORMERS  AND  DEVICES: 

Charge  to  this  account  the  cost  of  repairing  all  overhead  and  under- 
ground transformers  (including  refilling  with  oil),  pole  line  lightning 
arresters,  transformer  cut-out  boxes,  line  cut-out  switches,  etc.,  in  the 
distribution  system. 

NOTE. — Upon  filing  with  the  Railroad  Commission  a  notice  thereof,  the  accounting 
corporation  may  also  include  in  this  account  the  cost  of  repairing  line  transformers 
and  devices  temporarily  out  of  service. 


02  CLASSIFICATION  OF  ACCOIX  l>.   Kl.KCTRIC  CORPORATIONS. 

E-54.  REPAIRS  TO  ELECTRIC  SERVICES  : 

Charge  to  this  account  the  cost  of  repairing  all  conductors  (and 
appurtenant  insulation,  ducts  and  supports)  connecting  the  distribu- 
tion system  mains  with  electric  apparatus  and  appliances  in  possession 
of  consumers. 

NOTE. — The  cost  of  renewing  or  modifying  service  shall  be  charged  to  this  account. 

E-55.  REPAIRS  TO  ELECTRIC  METERS: 

Charge  to  this  account  the  cost  of  repairing  all  meters  installed  for 
determining  the  amount  of  energy  delivered  to  consumers. 

NOTE  A. — Cost  of  removing  such  meters  and  of  setting  other  nn-t«-rs  substituted 
for  them  shall  be  charged  to  this  account. 

NOTE  B. — Upon  filing  with  the  Railroad  Commission  a  notice  thereof,  tin-  a  •count- 
ing corporation  may  also  include  in  this  account  the  cost  of  repairing  meters 
temporarily  withdrawn  from  service 

E-56.  REPAIRS  TO  MUNICIPAL  STREET  LIGHTING  SYSTEM  : 

Charge  to  this  account  the  cost  of  repairing  all  lighting  equipment 
operated  and  maintained  under  the  contracts  for  public  lighting  entered 
into  with  a  municipality,  embracing  public  arc  lights.  Xernst  lamps 
and  incandescent  lamps  provided  for  in  the  contract,  and  all  circuits, 
poles,  cross-arms,  pins,  braces,  insulators  and  arc  supports  and  ac- 
cessory equipment  required  under  the  terms  of  the  contract.  There 
will  not  be  charged  to  this  account  the  cost  of  repairing  any  equipment 
properly  chargeable  to  "Distribution  System,"  this  account  being  de- 
signed to  cover  only  the  cost  of  lighting  systems  devoted  entirely  to  the 
municipal  contract  service.  Where  the  terms  of  the  contract  or  an  ordi- 
nance of  the  municipality  require  extension  of  mains  and  repairs  for 
lighting  under  the  terms  of  the  contract,  the  cost  of  such  extension  and 
repairs,  if  used  solely  for  public  lighting  under  such  contract,  will  be 
charged  to  this  account. 

E-57.  REPAIRS  TO  COMMERCIAL  ARC  LAMPS: 

Charge  to  this  account  the  cost  of  repairing  all  property  of  the  com- 
pany in  commercial  arc  lamps  supplied  to  consumers  (including  munic- 
ipal buildings)  where  such  lamps  have  an  expeetaney  of  life  in  service 
of  more  than  one  year. 

NOTE  A. — Repairing  meters  supplied  to  consumers  is  provided  for  in  a  foregoing 
account  and  should  not  be  included  herein. 

NOTE  B. — Upon  filing  with  the  Railroad  Commission  a  notice  thereof,  the  account- 
ing corporation  may  also  include  in  this  account  the  cost  of  repairing  arc  lamps 
temporarily  withdrawn  from  service. 

NOTE  C. — Include  in  this  account  all  repairs  to  glower  or  Nernst  lamps. 

E — 58.  REPAIRS  TO  INSTALLATIONS  ON  CONSUMERS'  PREMISES: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  installed 
on  consumers'  premises  for  purposes  of  supplying  energy  of  a  certain 
voltage,  kind  or  character.  Repairs  to  such  installations  as  coming 


ri.\s>iKirATiox  OF  AcrorxTs.  ELECTRIC  CORPORATIONS.  53 

hereunder  would  include  motor  sets  for  theater  lighting,  amusement 
parks,  etc. ;  also  motors,  fans.  etc. 

NOTE.— Do  not  include  in  this  account  repairs  to  transformers,  meters,  services, 
appliances  loaned,  or  commercial  arc  lamps  and  lamps  installed  in  connection  with 
rates  or  renewals  thereof. 

E-59.  KEPAIRS  TO  [MISCELLANEOUS  DISTRIBUTION  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  miscellaneous  equip- 
ment used  in  the  distribution  of  electrical  energy  which  is  not  includible 
in  any  of  the  foregoing  accounts.  This  includes  repairs  to  tools  and 
appliances  (working  stock  only),  wagons  and  harness,  autos,  motor- 
cycles, bicycles,  furniture  and  fixtures,  roads,  trestles  and  bridges, 
where  used  specifically  in  the  distribution  of  electrical  energy,  unless 
provided  for  in  proper  clearing  accounts  hereinafter  described. 

NOTE. — Where  any  item  of  miscellaneous  distribution  equipment  is  used  jointly  with 
production,  transmission  or  other  departments,  the  cost  of  repairs  of  such  items  shall 
be  included  in  appropriate  sub-accounts  under  "General  Expense." 

Commercial    Expenses. 

E-60.  NEW  BUSINESS  EXPENSES: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended  in 
getting  new  business.  This  shall  include  the  cost  of  advertising,  print- 
ing, posters,  handbills,  commissions  paid  canvassers,  solicitors,  and 
dealers  for  introduction  and  sale  of  electrical  appliances,  etc.,  also 
salaries  of  advertising  manager,  collectors,  solicitors,  together  with  their 
personal  'expenses,  livery,  etc..  and  costs  of  demonstrations  and  exhi- 
bitions. 

E-61.  FREE  INSTALLATION  EXPENSES: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended  in 
furnishing  free  house  wiring,  free  connection  of  appliances  and  electric 
Minis,  unless  the  cost  of  such  services  are  to  be  paid  for  by  the  con- 
sumers. 

E-62.  COMMERCIAL  DEPARTMENT  SALARIES  AND  EXPENSES: 

Charge  to  this  account  the  cost  of  keeping  the  accounts  of  the  con- 
sumers, including  a  proportion  of  the  salaries  and  expenses  of  general 
officer  and  assistants  in  charge  of  the  commercial  department,  and 
salaries  of  bookkeepers  and  all  clerks  in  the  accounting  department, 
having  to  do  with  consumers'  accounts.  This  covers  all  expenses  in- 
curred in  determining  the  amount  of  sales,  and  in  keeping  the  accounts 
of  such  sales  and  collections  as  are  not  includible  in  the  accounts  of 
indexing  and  collection  divisions.  Also  rent  of  offices. 

E-63.  COMMERCIAL  DEPARTMENT  INDEXING  : 

Charge  to  this  account  the  cost  of  reading  or  indexing  meters,  in- 
cluding indexer's  lamps;  also  badges  and  carfare  and  expenses  of 
indexers,  etc. 


54  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

E-64.  COMMERCIAL  DEPARTMENT  COLLECTIONS: 

Charge  to  this  account  the  expense  of  the  collection  bureau,  including 
collectors'  salaries  or  commissions,  badges,  carfare,  etc. 

E-65.  MISCELLANEOUS  COMMERCIAL  EXPENSES: 

Charge  to  this  account  all  expenses  for  salaries  and  wagt  s  ;m<l  ex- 
penses not  includible  in  any  of  the  foregoing  accounts. 

General    and    Miscellaneous    Expenses. 

E-66.  SALARIES  OF  GENERAL  OFFICERS: 

Charge  to  this  account  the  salaries  of  general  officers,  including  the 
President,  Vice-Presidents,  Secretary.  Treasurer,  Comptroller,  Auditor, 
General  Manager,  and  all  other  officers  whose  jurisdiction  extends  over 
the  entire  business  and  whose  services  are  not  chargeable  to  any 
particular  department. 

E-67.  SALARIES  OF  GENERAL  OFFICE  CLERKS: 

Charge  to  this  account  the  salaries  of  all  clerks  and  assistants  con- 
nected with  the  general  offices,  except  such  as  may  be  directly  engaged 
in  other  departments,  in  which  case  their  compensation  should  !;<• 
charged  to  such  department  directly.  Where  general  office  clerks  also 
perform  services  for  other  departments,  their  compensation  will  in- 
apportioned  accordingly  and  charged  to  the  respective  departmental 
accounts. 

E-68.  MISCELLANEOUS  GENERAL  OFFICE  SUPPLIES  AND  EXPENSES  : 

Charge  to  this  account  the  cost  of  all  office  supplies  and  expenses, 
newspapers  and  periodicals,  messenger  and  janitor  service,  directories, 
telegrams,  exchange  on  remittances,  etc.  Charge  also  the  cost  of  books, 
stationery,  telephone,  repairs  of  furniture  and  fixtures,  etc. ;  also  travel- 
ing, office  and  incidental  expenses  of  general  officers  and  attendants; 
also  rent  of  general  office  buildings. 

E-69.  LAW  EXPENSES — GENERAL: 

Charge  to  this  account  all  law  expenses  except  those  incurred  in  con- 
nection with  the  defense  and  settlement  of  injury  and  damage  claims, 
include  also  all  salaries  and  expenses  of  counsel,  solicitors  and  general 
attorneys,  their  clerks  and  attendants,  etc.  Also  include  the  c-^t  <i!' 
law  books,  printing  briefs,  legal  forms,  testimony,  reports,  fees  and 
retainers  of  general  counsel  and  attorneys,  court  costs  and  payments  of 
specific  notarial  and  witness  fees,  expenses  of  taking  depositions,  and 
other  general  law  and  court  expenses.  Expenses  of  arbitrators  of  dis- 
puted points  will  also  be  included  in  this  account. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  55 

E-70.  RAILROAD  COMMISSION  EXPENSES: 

Charge  to  this  account  all  fees,  retainers  and  expenses  of  counsel, 
solicitors,  attorneys,  clerks,  attendants,  expert  witnesses  and  others 
whose  services  are  secured  in  the  defense  and  prosecution  of  all  peti- 
tions and  other  transactions  before  the  Railroad  Commission  of  the 
State  of  California.  Expenses  which  are  made  necessary  by  rules,  reg- 
ulations and  orders  of  the  Commission,  as  improvements  of  service, 
additional  inspections,  etc.,  will  not  be  charged  to  this  account,  but  to 
the  appropriate  departmental  operating  expense  account. 

E-71.  INJURIES  AND  DAMAGES: 

Charge  to  this  account  all  damages  to  or  destruction  of  property 
other  than  that  owned  by  the  corporation,  including  the  cost  of  restor- 
ing the  property  less  insurance  or  legal  damages  allowed,  and  with  all 
expenses  incident  to  the  injury  and  death  of  employees  and  other  per- 
sons for  whose  injury  or  death  the  corporation  is  held  liable  or  in  the 
settlement  of  which  claim  allowances  are  made.  This  embraces  judg- 
ment for  damages  and  plaintiff's  court  costs;  proportion  of  salaries  and 
expenses  or  fees  of  physicians  and  surgeons,  expenses  of  undertakers, 
nurses  and  hospital  expenses;  transportation  of  injured  persons;  med- 
ical and  surgical  appliances ;  contributions  to  hospitals ;  and  wages  and 
salaries  paid  to  employees  while  disabled.  The  salaries  and  expenses  of 
the  corporation's  claim  agents,  adjusters  and  their  assistants  will  be 
charged  to  this  account.  The  compensation  of  general  solicitors  and 
counsel,  or  other  attorneys,  of  the  corporation,  while  engaged  in  the 
defense  and  settlement  of  damage  suits,  will  also,  be  included  in  this 
account.  If  it  is  desired  to  open  an  injuries  and  damages  reserve,  and 
to  make  charges  against  operating  expenses  on  account  of  the  injuries 
raid  damages  on  some  arbitrary  basis,  the  amount  so  charged  shall  be 
credited  to  the  "Injuries  and  Damages  Reserve,"  and  the  actual 
expenditure  for  the  purposes  above  enumerated  shall  be  charged 
against  such  reserve  account. 

Corporations  are  at  liberty  to  subdivide  this  account  to  show  the 
following  expenses : 

Injuries  to  Persons. 
Damages  to  Property. 

"Where  such  subdivisions  are  not  made,  the  charge  to  this  account 
should  be  so  made  as  to  admit  of  separation  over  two  such  subdivisions 
when  called  for  by  the  Railroad  Commission. 
E-72.  RELIEF  DEPARTMENT  AND  EXPENSES: 

Charge  to  this  account  pensions  paid  to  retired  employees  or  repre- 
sentatives of  former  employees  and  expenses  in  connection  therewith, 
salaries  and  expenses  incurred  in  conducting  a  relief  department,  and 
contributions  made  to  such  department. 


56  CLASSIFICATION-  OF  A( 


>RPORATIONS. 


E-73.  ELECTRIC  FRANCHISE 

Charge  to  this  account  the  cost  of  all  service  and  materials  and  sup- 
plies furnished  to  municipal  corporations  in  compliance  with  franchise 
requirements  and  for  which  no  payment  is  received  by  the  corporation  : 
also  of  all  direct  expense,  such  as  paving  and  other  like  matters  incurred 
in  compliance  with  such  requirements  and  for  which  no  reimbursement 
is  received  by  the  corporation.  Amounts  charged  to  this  account  for 
which  there  is  no  direct  money  outlay  shall  be  credited  to  Account 
No.  E-86,  "Undistributed  Adjustments—  Balance.  ?  ' 

E-74.  OTHER  GENERAL  EXPENSES: 

Charge  to  this  account  such  incidental  general  expenses  as  are  not 
provided  for  in  the  foregoing  accounts,  such  as  cost  of  publishing  notices 
of  stockholders'  meetings,  of  election  of  directors,  annual  reports  in 
newspapers,  and  of  dividends  declared  :  and  fees  and  expenses  paid  to 
directors. 

E-75.  INSURANCE: 

Charge  to  this  account  monthly  proportion  of  insurance  premiums 
paid  insurance  companies  for  fire,  fidelity,  boiler,  casualty,  burglar  and 
other  insurance. 

NOTE.  —  Charge  all  insurance  premiums  that  cover  insurance  extending  over  a  period 
of  one  month  or  more  to  ledger  account  "Prepaid  Insurance,"  crediting  that  account 
with,  the  monthly  proportion,  as  charge  is  made. 


E-76.  REPAIRS  TO  GENERAL  S 

Charge  to  this  account  the  cost  of  repairing  all  buildings  and  other 
structures  of  a  permanent  character  devoted  to  general  corporate  pur- 
poses. not  restricted  to  electric  operations  and  not  includible  in  any  of 
the  departmental  accounts;  also  repair  of  all  fixtures  permanently 
attached  thereto  and  made  a  part  thereof,  such  as  water  pipes  and 
fixtures,  steam  pipes  and  fixtures  for  warming  and  ventilating,  gas  pipes 
and  fixtures  for  lighting,  etc.;  electric  wiring  and  fixtures  for  lighting. 
signaling,  etc.;  elevators,  etc.:  and  the  engines  and  motors  specifically- 
provided  for  producing  steam  for  such  engines  and  for  heating,  electric 
generators  specifically  provided  for  producing  current  for  lighting  such 
buildings,  etc.  This  account  includes  such  piers  and  other  foundations 
as  the  buildings  in  (or  in  connection  with)  which  they  are  constructed. 
and  to  outlast  the  first  machinery  installed  and  mounted  therein. 

NOTE  A.  —  Among  such  buildings  may  be  mentioned  general  office  buildings,  general 
shop  buildings,  general  storehouses,  general  stable  buildings,  etc.  Where  general 
offices,  shops,  stables,  etc..  are  in  buildings  includible  in  a  department  account,  as. 
e.  g.,  in  a  power  station  building,  no  part  of  the  cost  of  such  building  shall  be  charged 
to  this  account.  This  account  is  provided  for  structures  of  a  general  or  miscellaneous 
character  not  assignable  to  any  particular  department. 

NOTE  B.  —  When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam  for 
some  particular  department  and  only  incidentally  for  furnishing  steam  for  heating  a 
general  building  and  operating  the  equipment  therein,  the  entire  cost  of  such  furnaces 
and  boilers  shall  be  charged  to  the  appropriate  departmental  account. 


CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS.  OY 

E-77.  REPAIRS  TO  GENERAL  EQUIPMENT — OFFICE  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  type- 
writers, adding  machines,  etc.,  drafting-room  equipment,  and  other  like 
office  appliances  and  equipment.  Also  engineering  instruments,  if  it  is 
not  desired  to  distribute  such  expenses. 

E-78.  REPAIRS  TO  GENERAL  EQUIPMENT — SHOP  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  specially 
provided  for  general  shops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  electric  generators,  and  other  power  apparatus  used  in  oper- 
ating machinery  in  such  shops;  machine  tools,  cranes,  hoists,  shafting, 
belts,  and  like  shop  equipment ;  also  such  smithing  equipment  in  general 
shops  as  is  used  principally  for  other  general  purposes  than  shoeing 
horses  and  repairing  vehicles,  except  as  provided  for  in  appropriate 
clearing  accounts  hereinafter  described. 

E-79.  REPAIRS  TO  GENERAL  EQUIPMENT — STORE  EQUIPMENT: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
store  structures,  such  as  movable  counters,  movable  shelving  and  other 
movable  equipment  of  like  nature,  carts,  barrows,  trucks,  etc.,  and  other 
apparatus  and  appliances  used  in  handling  materials  and  supplies. 

NOTE  A. — Counters,  shelving  and  the  like  which  are  permanently  attached  to  the 
structures  shall  be  charged  to  Account  No.  K— 76,  "Repairs  to  General  Structures," 
and  not  to  this  account. 

NOTE  B. — If  the  accounting  corporation  so  desires,  this  account  may  be  eliminated 
from  operating  expenses,  and  the  cost  of  repairs  of  equipment  listed  in  this  account 
may  be  charged  to  Clearing  Account.  "Supply  Expenses." 

E-80.  REPAIRS  TO  GENERAL  EQUIPMENT — STABLE  AND  GARAGE  EQUIP- 
MENT : 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
stables  and  garages,  including  harness,  drays,  wagons,  automobiles,  and 
other  vehicles,  equipment  of  shoeing  shops,  harness  repair  shops,  vehicle 
repair  shops,  etc. 

NOTE. — The  accounting  corporation  may,  if  it  so  desires,  eliminate  this  account 
from  operating  expenses,  and  charge  the  cost  of  the  repair  of  the  equipment  listed 
herein  to  proper  clearing  account  as  hereinafter  provided. 

E-81.  REPAIRS  TO  GENERAL  EQUIPMENT — .MISCELLANEOUS: 

Charge  to  this  account  the  cost  of  repairing  all  other  equipment,  such 
as  laboratory  equipment  and  other  tools  and  instruments  and  miscella- 
neous equipment  not  includible  in  the  foregoing  accounts  under 
''Repairs  to  General  Equipment/'  except  as  provided  for  in  clearing 
accounts  hereinafter  described. 

E-82.  REPAIRS  TO  TELEPHONE  LINES: 

Charge  to  this  account  the  cost  of  repairing  telephone  lines  for  the 
use  of  the  entire  system.  These  charges  should  include  the  cost  of  wires 


58  CLASSIFICATION  OP  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

and  insulators,  cross-arms,  poles  (where  devoted  suli-ly  in  supporting 
telephone  lines),  telephone  instruments,  etc. 

NOTE. — Do  not  include  in  this  account  the  cost  of  repairing  any  portion  of  poles 
or  supports  where  jointly  used  in  the  transmission  or  distribution  of  electric  current. 

E-83.  REPAIRS  TO  ROADS,  TRESTLES  AND  BRIDGES  : 

Charge  to  this  account  the  cost  of  repairing  roads,  trestles,  bridges 
and  tramways  required  for  the  transportation  of  machinery  and  sup- 
plies, or  the  operation  of  the  corporation. 

NOTE. — Do  not  include  in  this  account  repairs  to  any  roads,  trestles,  or  bridges 
which  may  be  solely  for  the  use  of  Production,  Transmission  or  Distribution  systems. 
(See  Accounts  No.  E-16,  E-31  and  B-49.) 

E-84.  ELECTRIC  EXPENSES  TRANSFERRED — CR.  : 

Credit  to  this  account  the  proportion  of  operating  expenses  (includ- 
ing depreciation  and  other  amortization  as  well  as  repairs)  chargeable 
to  other  coordinate  departments  (such  as  gas  or  street  railroad) 
within  the  same  corporation,  but  defrayed  in  the  first  instance  by  the 
electric  department. 

NOTE. — Do  not  credit  to  this  account  any  allowance  in  the  nature  of  rent  or  return 
of  the  cost  or  value  of  property. 

E-85.  JOINT  OPERATING  EXPENSES — CR.  : 

When  any  general  or  miscellaneous  operating  expenses  are  assumed 
by  the  accounting  corporation  for  the  joint  benefit  of  itself  and  other 
electric  corporations  under  an  arrangement  for  apportioning  such 
expense  the  portion  chargeable  to  others  should  be  credited  to  this 
account.  The  portion  so  credited  must  not  include  any  allowance  for 
profit  or  return  upon  the  value  of  the  property. 

NOTE. — Bills  rendered  for  joint  expenses  should  show  the  expenses  in  detail,  and 
the  debtor  corporation  should  distribute  the  total  account  to  its  primary  expense 
accounts. 

E-86.  UNDISTRIBUTED  ADJUSTMENTS — BALANCES: 

At  least  once  a  year  an  inventory  of  materials  and  supplies  and  of 
tools  shall  be  taken,  and  the  difference  between  the  inventories  and  the 
ledger  balances  shall  be  debited  or  credited  to  this  account  in  case  it 
can  not  be  assigned  to  specific  accounts  as  provided  under  Account 
No.  9,  "Material  and  Supplies."  Credit  to  this  account  all  discounts 
recovered  through  the  prompt  payment  of  bills  for  materials  and 
supplies  consumed  in  operation,  unless  such  discounts  are  applied  to 
the  particular  bills;  also  amounts  included  in  expenses,  as  provided  in 
Account  No.  E-73,  "Electric  Franchise  Requirements." 

E-87.  EXTRAORDINARY  REPAIRS: 

Charge  to  this  account  and  concurrently  credit  to  account,  "Reserve 
for  Extraordinary  Repairs,"  the  estimated  monthly  provision  for 
extraordinary  repairs  necessitated  by  sleet  storms,  fire,  floods,  etc. 


CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS.  59 

E-88.  RPJPAIRS  CHARGED  TO  RESERVES — CR.  : 

Credit  to  this  account  and  charge  concurrently  to  the  account, 
"Reserve  for  Accrued  Depreciation,"  and  amount  equal  to  the  cost  of 
extraordinary  repairs  for  which  provision  has  been  made  in  that 
reserve;  also  credit  to  this  account  and  charge  concurrently  to  the 
insurers  or  to  the  insurance  reserve  an  amount  equal  to  the  cost  of 
repairs  made  necessary  by  casualties  when  such  cost  is  covered  by 
insurance  or  an  insurance  reserve.  All  such  repairs  should  be  charged 
in  the  first  instance  to  the  proper  repair  accounts. 

Other   Expenses. 

E-89.  BY-PRODUCTS  EXPENSE: 

Charge  to  this  account  the  cost  of  labor  and  material  expended  in 
handling  by-products  from  the  sale  of  which  is  derived  ' '  By-Products 
Revenue. ' ' 

E-90.  STEAM  SALES  EXPENSE: 

Charge  to  this  account  all  labor  and  material  expended  for  the  sale 
of  steam;  also  include  proper  proportion  of  production  expense  where 
steam  is  jointly  produced  for  sale  to  general  consumers. 

Taxes. 

E-91.  TAXES: 

This  account  should  be  charged  with  (account  Taxes  Accrued  being 
credited)  regular  monthly  installments  sufficient  to  cover  all  taxes 
imposed  by  lawful  authority. 

A.  Upon  property  real,  personal  and  mixed  (except  assessments 
for  betterment  to  real  estate),  which  should  be  charged  to  account 
benefited. 

B.  Upon   earnings   in   addition   to  or   in   lieu   of  taxes  upon 
property. 

C.  All  specific  licenses  or  charges  levied  upon  the  corporation 
based   upon    or   with   respect   to   its   capital   stock,   property   or 
business. 

D.  The  value  of  all  discounts  allowed  or  services  rendered  in 
lieu  of  taxes. 

NOTE. — The  amount  of  taxes  accrued  during  any  month  shall,  when  the  levy  is 
unknown,  be  estimated,  and  when  the  levy  is  finally  determined  the  estimate  shall  be 
corrected  in  the  provision  for  taxes  during  the  remainder  of  the  year.  For  example, 
if  at  the  beginning  of  the  tax  year  the  taxes  against  the  corporation  are  estimated 
to  be  $600  for  the  year,  the  estimated  monthly  charge  will  be  $50.  If  during  the 
fifth  month  it  is  found  that  the  levy  is  $640,  adiustment  should  be  made  and  a  charge 
of  $55  per  month  made  to  Taxes  for  the  remaining  eight  months  of  the  tax  year. 

Amortization  of  General   Capital. 

E-92.  AMORTIZATION  OF  FRANCHISES  AND  PATENTS: 

Charge  to  this  account  each  month  the  amount  necessary  to  cover 
such  portions  of  the  life  of  franchises  and  patents  as  have  expired  or 


60  CLASSIFICATION  <>F  A(  T<  >!  "XTS.  KLKCTKMC  f<  >KP(  )RATI(  >X>. 

been  consumed  during  the  month.  The  amount  so  charged  shall  be 
concurrently  credited  1o  an  appropriate  sub-account  under  Account 
No.  30.  "Reserve  for  Amortization  of  Intangible  Capital." 

XOTE. — The  amount  charged  to  this  account  shall  be  based  upon  a  rule  deter- 
mined by  the  accounting  corporation  and  filed  with  the  Railroad  Commission.  The 
purpose  "and  effect  of  such  rule  should  be  to  accumulate  by  charges  equitably  dis- 
tributed throughout  the  life  of  any  franchise  or  patent,  a  reserve  that  will,  at  the 
expiration  of  its  life,  equal  the  original  cost. 

E-93.  DEPRECIATION  OF  PI.AXT  AND  K^TIPMEXT  : 

Charge  to  this  account  monthly  the  amount  estimated  to  be  necessary 
to  cover  the  depreciation  accruing  during  the  month  in  the  corpora- 
tion's tangible  capital.  The  amount  charged  to  this  account  shall  be 
concurrently  credited  to  account.  "Reserve  for  Accrued  Depreciation." 

NOTE. — Charges  to  the  above  depreciation  account  should  be  separately  reported 
under  the  following  sub-heads  : 

A.  Depreciation  of  Production  Capital. 

B.  Depreciation  of  Transmission   Capital. 

C.  Depreciation  of  Distribution  Capital. 

D.  Depreciation  of  General  Capital. 

CLEARING  ACCOUNTS. 
(Not  required  of  Class  B  and  C  Corporations.) 

The  following  accounts  are  provided  for  certain  expenses  which 
usually  affect  several  classes  of  operations  but  need  to  be  brought 
together  in  one  account  in  order  that  the  total  of  the  expenses  may  be 
known  and  property  distributed. 

An  inventory  of  tools,  harness,  vehicles,  and  other  materials  and 
supplies  in  shops,  stores,  stables,  and  garages  shall  be  taken  at  least 
once  a  year,  and  any  loss  disclosed  by  such  inventory  in  excess  of  the 
amount  taken  into  account  through  the  depreciation  currently  charged 
out  should  be  apportioned  to  the  appropriate  expense  accounts  on  the 
basis  of  charges  made  since  last  inventory. 

1.  Shop  Expenses.     This  account  or  appropriate  sub-accounts  should 
be  arranged  so  as  to  record  separately  the  expenses  of  the  ueneral  shops 
as  follows:  (1)  Salary  and  wages  of  shop  employees;  (2)  personal  and 
incidental  expenses  of  such  employees;  (3)  materials  and  supplies  for 
general  shop  use;    (4)    repairs  of  tools,  machinery   and   appliances; 
(5)  rent  of  shop  buildings;  (6)  depreciation  of  tools,  machinery,  and 
appliances. 

The  shop  expense  account  should  be  cleared  by  apportioning  the 
total  amount  of  the  expenses  to  the  various  jobs  on  an  equitable  basis. 

2.  Siahlt    nml   <;<irn<i<    Ecp«*9es.     This  account   or  appropriate  sub- 
accounts  should  be  arranged  s.»  as  to  record  M-paratel\    the  expenses  of 
stables   and   garages   as    follows:      1      Salaries   and   wages   of   drivers. 
chauffeurs,  stablemen,   izarauemen.   and  other  employees  in  stables  and 
garages;    (2)    personal    and    incidental    expenses    of   such    employees: 
(3)  materials  and  supplies,  including  fuel  and  gasoline,  harness,  tires. 


XJOCXTS.  ELECTRIC  CORPORATIONS.  6] 

and  other  supplies  for  stables  and  garages;  (4)  repairs  of  automobiles 
and  other  vehicles  and  harness;  (5)  rent  of  buildings  or  vehicles; 
(6)  depreciation  on  vehicles,  horses,  harness,  etc. 

Credit  to  this  account  any  charges  for  services  performed  for  others. 

A  record  should  be  kept  of  the  use  of  teams  and  automobiles,  and 
each  month  the  total  expense  should  be  apportioned  to  the  proper 
accounts  according  to  use.  or  the  debits  to  the  expense  accounts  may  be 
made  at  rates  per  hour  of  service  which  have  been  found  to  be  fair  and 
to  distribute  the  total  expense  equitably. 

'3.  Tool  E.I'IH  nx( .  Charge  to  this  account  all  expense  for  tools  (except 
shop  tools  carried  as  supplies  unissued).  It  includes  the  cost  of  small 
hand  tools  of  which  no  account  is  kept  after  issue ;  the  cost  of  repairing 
tools;  the  cost  of  tools  lost  or  stolen,  and  depreciation  on  tools  taken 
out  of  service  because  of  breakage  or  other  deterioration. 

This  account  should  be  cleared  by  adding  to  the  expense  of  repairs 
and  cost  of  plant  installed  each  month  such  amounts  as  will  equitably 
distribute  the  total  monthly  expense  for  tools. 

4.  Xupi>l>/  E.rpense.     Charge  to  this  account  or  to  appropriate  sub- 
accounts  all  expenses   (except  insurance  and  taxes)   incurred  directly 
in  connection  with  the  purchase,  storage,  handling,  and  distribution  of 
materials  and  supplies  and  stationery.    It  includes  the  pay  and  expenses 
of  purchasing  agents,  managers  of  stores,  clerks,  and  laborers;  rents  of 
stores,  cost  of  lighting,  heating,  and  undistributed  freight  and  express 
charges,  and  the  estimated  depreciation  on  supplies  due  to  breakage, 
leakage,  shortage,  and  wear  and  tear.     This  account  should  be  cleared 
by  adding  to  the  cost  of  materials  and  supplies  passing  through  stores 
a   suitable  loading  charge  which   will   equitably   distribute  the   total 
cost  of  conducting  the  stores,  and  by  adding  to  the  cost  of  such  supplies 
as  are  bought  by  the  purchasing  department  pro  rata  share  of  the  total 
expenses  of  the  purchasing  department. 

5.  Engineering  E.r[><  nse.     Charge  to  this  account  or  appropriate  sub- 
accounts   all   expenses  for   engineering  so   as  to  show  separately  the 
following:    (1)    Salaries  and  wages;    (2)    personal  and  incidental  ex- 
penses of  engineering  department  employees;   (3)   rent  of  office  and 
office  expenses. 

This  account  should  be  cleared  by  apportioning  the  total  expenses  to 
operating  expense  and  fixed  capital  accounts  on  the  basis  of  service 
rendered,  as  determined  by  the  actual  time  devoted  to  particular  jobs 
or  an  equitable  basis  fixed  by  the  officers  of  the  corporation. 

(i.  I'Jutif  SIIJH  rrixioii  E.r/,<  iis< .  Charge  to  this  account  the  cost  of 
general  supervision  of  the  maintenance  and  construction  of  the  plant 
where  a  separate  department  of  the  corporation's  organization  is 
charged  with  such  supervision.  It  includes  the  pay  and  expenses  of 


62  CLASSIFICATION  OF  ACCOUNTS,  ELECTRIC  CORPORATIONS. 

the  plant  supervising  officers,  such  as  the  general  plant  superintendent, 
district  plant  superintendent,  plant  engineers  and  their  office  and  field 
forces,  charged  with  planning  for  and  superintending  the  work  of 
maintenance  and  plant  construction. 

The  account  or  appropriate  sub-accounts  should  be  so  arranged  as  to 
show  in  detail  the  expenses  of  the  plant  supervision  department  as 
follows:  (1)  Salaries  and  wages;  (2)  personal  and  incidental  expenses 
of  employees;  (3)  rent  of  office  and  office  expenses. 

This  account  should  be  cleared  each  month  by  charging  directly  to 
the  appropriate  accounts  such  expenses  as  can  be  allocated  to  particular 
pieces  of  work  and  by  charging  out  the  balance  on  the  basis  of  labor 
employed  in  all  construction  or  maintenance  work  in  progress  during 
the  month. 

NOTE. — The  pay  of  general  foreman  and  foremen  in  direct  charge  of  jobs  should 
be  included  in  the  cost  of  job  and  not  charged  to  this  account. 

Every  electric  corporation  shall  include  in  its  expense  depreciation 
charges  for  the  purpose  of  creating  proper  and  adequate  reserves  to 
cover  the  expense  of  depreciation  currently  accruing  in  its  fixed  capital, 
and  for  that  purpose  three  accounts  are  provided  for  the  expense  of 
depreciation  as  above:  Account  E-93,  "Depreciation  of  Plant  and 
Equipment;"  Account  E-87,  "Extraordinary  Repairs;"  Account 
E-92,  "Amortization  of  Franchises  and  Patents." 

By  "Expense  of  Depreciation"  is  meant  the  loss  suffered  through 
the  current  lessening  in  value  of  tangible  property  from  wear  and 
tear,  decay,  obsolescense,  or  inadequacy  resulting  from  use,  age,  physi- 
cal change  or  supersession  by  reason  of  new  inventions  and  discoveries, 
changes  in  popular  demand,  or  public  requirements ;  also  losses  suffered 
through  destruction  of  property  by  extraordinary  casualties  and  de- 
creases in  the  value  of  intangible  property  through  lapse  of  time. 

The  amount  charged  as  expense  of  depreciation  shall  be  based  upon 
values  determined  by  the  accounting  corporation.  Such  rules  may  be 
devised  from  a  consideration  of  the  corporation's  history  and  experi- 
ence. Whatever  may  be  the  basis,  the  rules  and  a  sworn  statement  of 
the  facts  and  expert  opinions  and  estimates  upon  which  they  are  based 
shall  be  filed  with  the  Railroad  Commission.  Each  amendment  of  any 
rule,  together  with  statements  and  opinions,  shall  be  also  filed  with  the 
Railroad  Commission,  before  they  are  put  into  effect  by  the  accounting 
corporation,  and  shall  show  the  date  when  they  arc  to  become  effective. 


ELECTRIC  CORPORATIONS. 


LIST  OF  ACCOUNTS. 

ASSET  ACCOUNTS. 

PAGE. 

1.  Fixed  Capital  Installed  Prior  to  January  1,  1913 0 

2.  Fixed  Capital   Installed  Since  December  31,   1912 7 

3.  Cash  and  Deposits 7 

A.  Cash   7 

B.  Special  Deposits 7 

4.  Notes    Receivable    7 

5.  Accounts  Receivable 7 

A.  Accounts  with   System  Corporations 7 

B.  Due  from  Consumers  and  Agents 8 

C.  Miscellaneous  Accounts   Receivable 8 

6.  Interest  and  Dividends  Receivable 8 

7.  Other   Current   Assets 8 

8.  Investments    8 

A.  Securities  of  Other  Corporations 8 

B.  Advances  to  System  Corporations  for  Construction,  Equipment  and 

Betterments    9 

C.  Miscellaneous  Investments 9 

9.  Materials  and   Supplies 9 

10.  Sinking:  Funds 10 

11.  Other  Special  Funds  _i 10 

12.  Treasury   Securities   10 

13.  Prepaid  Expense 10 

A.  Prepaid  Rents -. 10 

B.  Prepaid  Taxes   .  10 

C.  Prepaid  Insurance 11 

D.  Other  Prepayments  11 

14.  Unamortized  Discount  on  Securities  and  Expenses 11 

15.  Other  Suspense 11 

16.  Construction  Work  in  Progress 12 

17.  Corporate  Deficit 12 

LIABILITY  ACCOUNTS. 

18.  Capital  Stock 12 

19.  Installments  on  Stock  Subscription 12 

20.  Funded  Debt 12 

21.  Receivers'   Certificates   13 

22.  Advances    from     System    Corporations    for    Construction,    Equipment    and 

Betterments 13 

23.  Notes  Payable 13 

24.  Accounts  Payable  13 

A.  Accounts  with  System  Corporations 13 

I'..    Audited  Vouchers 14 

( '.   Consumers'  Deposits   14 

I>.   Miscellaneous  Accounts  Payable 14 

25.  Interest  Accrued 14 

20.  Taxes  Acr-rued 14 

27.   Dividends  Declared  „                                   14 

lis.  Servjee  Billed   in    Advance -  14 

29.  Reserve  for  Accrued  Depreciation 15 

30.  Reserve   I'm-  A morli/.at  ion  of  InlaimiMe  Capital 15 

31.  Unamort i/ed   Premium  on  Debt 16 

32.  Casualty   iind    Insurance   Reserves .  10 

33.  Income  Invested  Since  December  31.  1912.  in  Fixed  Capital 16 


64  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

PACK. 

34.' Res.-rves   Invested   in   Sinking  Funds 17 

3-").  Other  Reserves  from   Income  or   Surplus —             37 

36.  Corporate  Surplus  Unappropriated 17 

FIXED   CAPITAL. 
Intangible    Capital. 

C-  1.  Organization    18 

C—  2.  Franchise   (Electric)    1^ 

C-  3.  Patent  Rights __..  I'.i 

C-  4.  Other  Intangible  Capital 111 

TANGIBLE  CAPITAL. 

Landed  Capital. 

C-  5.  Land  Devoted  to  Electric  Operations in 

Production  Capital. 

C-  (5.   Dams.  Water  Conduits  and  Penstocks 2o 

C-  7.  Power  Plant  Buildings  and  General   Structures 2<> 

C-  S.   Hydraulic  Power  Plant   Equipment L1* 

C-  !>.  Furnaces.  Boilers  and  Accessories 21 

C-10.   Steam  Power  Plant  Equipment 21 

C-ll.   Gas  Producers  and  Accessories 22 

C-12.  Gas  Power  Plant  Equipment 22 

C-13.  Miscellaneous  Produc-tion  Equipment 22 

Transmission  and  Distribution  Capital. 

C-14.  Poles  and  Fixtures 23 

A.  Transmission    '. . 23 

B.  Distribution .  23 

C-15.  Overhead  System 23 

A.  Transmission 23 

B.  Distribution    23 

C-16.  Underground  Conduits 23 

A.  Transmission 23 

B.  Distribution    23 

C-17.  Sub-station  Buildings  and  General  Structures 23 

A.  Transmission 23 

B.  Distribution    23 

C-ls.   Sub-station    Equipment '. 24 

A.  Transmission    24 

B.  Distribution    24 

C-10.  Miscellaneous  Equipment 24 

A.  Transmission    24 

B.  Distribution    24 

C-20.  Line  Transformers  and  Devices -  24 

C-21.  Electric  Services 24 

C-22.  Meters    _ 24 

C-23.  Municipal  Street  Lighting  System 2.". 

C-24.  Commercial  Lamps  and  Lamp  Equipment 2."i 

<'  2.",.   Electric  Motors  and   I  lea  re  re 2t> 

C-26.   Installations  on  Consumers'  Premises 2t"i 

General  Capital. 

C-27.  General   Structures 2(i 

C-28.  General   Equipment 2(5 

A.   Geners'l    Olliee    Equipment 27 

P..    General    Shop    !•  qiiipmeiit  .,.  .27 


CLASSIFICATION  OF  ACCOTXTS.  KLKCTRIC  C<  )R!'(  )KATI()XS.  65 

PACK. 

('—•'!!.    Undistributed   Consi  niriinii    Expenditures 28 

A.    Engineering  ,-iud  Superintendence.. L's 

15.   Law   Expenses  During  Construction 28 

('.   Injuries  and  Damages  During  Construction 28 

I>.  Taxes  During:  Construction 29 

K.  Miscellaneous  Construction  Expenditures 29 

C-.'>2.    Interest  During  Construction , 29 

CM.'!.   Ccst  of  Plant  Purchased  in  Lieu  of  Plant  Constructed 29 

C-34.   Fixed  Capital  in  Other  Departments 29 

C -:;.">.   Fixed  Capital  Installed  Prior  to  January  1,  1913 30 

C-oii.   Fixed  Capital  Installed  Since  December  31,  1912 30 

INCOME  ACCOUNT. 

101.  Operating  Revenues  31 

1<!2.   Operating  Expenses 31 

1(!3.  Uncollectible  Electric  Bills 31 

104.    Non-operating  Revenues 31 

A.  Rent  Accrued  from  Lease  of  Electric  Plant 31 

15.  Miscellaneous  Rent  Revenues 31 

C.  Interest   and   Dividend  Revenues 31 

D.  Sinking  and  Other  Reserve  Fund  Accretions 32 

E.  Profit  on  Operations  of  Others— 32 

F.  Miscellaneous  Non-operating  Revenues 32 

10-5.   Non-opera  ting   Revenue    Deductions 32 

A.  Rent  Expense 32 

B.  Interest  Expense 32 

C.  Dividend  Expense 32 

D.  Others'  Operations  Expense 33 

E.  Miscellaneous  Non-operating  Expense 33 

F.  Non-operating  Taxes 33 

G.  Uncollectible  Non-operating  Revenues 33 

106.  Interest  Accrued  on  Funded  Debt 33 

107.  Other  Interest  Deductions 33 

His.   Rent    Deductions 33 

A.  Rent  for  Lease  of  Other  Electric  Plant 34 

15.   Rent  for  Conduits.  Poles  and  Other  Supports -  34 

C.  Rent  for  Instruments  and  Equipment 34 

D.  Miscellaneous  Rent  Deductions 34 

109.  Amortization  of  Debt  Discount  and  Expense 

110.  Amortization  of  Premium  on  Debt — Cr 34 

111.  Miscellaneous  Deductions  from  Income _  34 

A.  Loss  on  Operations  of  Others 35 

B.  Amortization  of  Lauded  Capital 35 

C.  Other  Contractual  Deductions  from  Income 3u 

CORPORATE   SURPLUS  OR   DEFICIT  ACCOUNT. 

112.  Dividends  on  Outstanding  Stock 36 

li:{.   Sinking  Fund  Appropriations 

114.   Miscellaneous  Deductions  from  Surplus 36 

A.  Expenses  Unprovided  for  Elsewhere 

B.  Realized  Depreciation  not  Covered  by  Reserve__. 

C.  Amortization  Unprovided  for  Elsewhere — 

D.  Gifts  to  Controlled  Corporations 

E.  Appropriations  to  Reserves — 

F.  Other  Appropriations  from  Surplus — 

G.  Other  Deductions  from  Surplus — 

ll.."i.  Miscellaneous  Additions  to  Surplus 37 


66  CLASSIFICATION  OF  ACCOUNTS.  ELECTRIC  CORPORATIONS. 

OPERATING   REVENUES. 

I'M, i. 

It-  1.  Municipal  Street  Lighting — Arc .'!S 

K     I'.  Municipal  Street  Lightint; — Incandescent :{S 

R-  3.  Municipal  Lighting — Miscellaneous .".*> 

R-  4.  Municipal  Power 38 

R-  5.  Commercial  Lighting — Flat  Rate—                                                                   .  38 

R-  G.  Commercial  Lighting— Metered 38 

R-  7.  Commercial  Power — Flat  Rate 30 

R-  8.  Commercial  Power — Metered 39 

R-  9.  Railway  Power 39 

R-10.  Other  Electrical  Corporations 39 

R-ll.  Rent  of  Meters 39 

R-12.  Breakdown  Service 39 

R-13.  Joint  Electric  Rent  Revenue 40 

R-14.  Miscellaneous   Electric  Revenue 40 

OTHER  OPERATING  REVENUES. 

R-15.  Rent  of  Electric  Appliances 40 

R-1G.  Electric  Merchandise  and  Jobbing  Revenue—  ___  40 

R-17.  Sale   of  By-products 41 

R-18.  Steam  Sales  Revenue 41 

OPERATING   EXPENSE   ACCOUNTS. 
Production    Expenses. 
CLASS  A. 

E-  1.  Superintendence   

E-  2.  Water  Collection  Labor  and  Expense 42 

E-  3.  Water  for  Hydraulic  Power 42 

E-  4.  Steam  Generation  Labor 

E-  5.  Fuel   for   Steam 

E-  6.  Steam  Generator  Supplies 

E-  7.   Steam  from  Other  Sources 

E-  8.  Producer  Gas  Labor 

I!     li.  Fuel   for   Gas 

E-10.  Producer  Gas  Supplies 

E-ll.  Power  Gas  from  Other  Sources 

E-12.  Electric   Plant   Labor 

E-13.  Electric   Plant   Supplies 

E-14.  Electric  Energy  from  Other  Sources — 

E-15.  General  Labor  and  Supplies 

E-16.  Repairs  to  Dams,  Water  Conduits  and  Penstocks — 

E-17.  Repairs  to  Power  Plant  Buildings  and  General  Structures— 

E-18.  Repairs  to  Hydraulic  Power  Plant  Equipment— . 

E-19.  Repairs  to  Boilers,  Furnaces  and  Accessories— 

E-20.  Repairs  to  Steam  Power  Plant  Equipment— 

i:  -2L   Repairs  to  Gas  Producers  and  Accessories— 

E-22.  Repairs  to  Gas  Power  Plant  Equipment— 

E-23.  Repairs  to  Miscellaneous  Production   Equipment--. 

CLASS  B. 

K_  i.  Superintendence   _. 

].;_  •_..  Water  Collection  Labor  and  Expense— 

E-  3.  Water  for  Hydraulic  Power— 

E-  4  to  E-  0.  Steam  Generation   _. 

E-  7.  Steam  from  Other  Sources 

E-  8  to  E-10.  Producer   Gas   Generation— 

E-ll.  Power  Gas  from  Other  Sources—- 


ATIOX  OF  ACCOUNTS,  TJ.KOTRIC  CORPORATIONS.  67 

PAOE. 

E-I.'J.   Plant   Suiinli.'s  .-ind   Expenses 43,44 

Electric;  Energy  from  Other  Sources 44 

General   Labor  and   Supplies . 44 

Repairs  to  Dams,  Water  Conduits  and  Penstocks 44 

Repairs  to  Power  Plant  Buildings  and  General  Structures 44 

E-23.  Repairs   to   Equipment 45,46 

CLASS  C. 
E-  1   to  E-23.  Production  Expenses  and  Repairs  of  Capital 42.43,44,45,46 

Transmission    Expenses. 

CLASS  A. 

E— 24.   Superintendence    _  47 

E-25.  Inspecting  and   Patrolling 47 

E-26.  Sub-station   Labor   47 

K  27.   Sub-station  Supplies  and  Expenses 47 

E-28.  General  Labor  and  Supplies 47 

E-29.   Repairs  to  Overhead  Transmission  System 47 

E-30.  Repairs  to  Underground  Transmission  System 47 

E-31.  Repairs  to  Sub-station  Buildings  and  General  Structures 48 

E-32.  Repairs  to  Sub-station  Equipment 48 

E-33.  Repairs  to  Miscellaneous  Transmission  Equipment 48 

CLASS  B. 

E-H4.                    Superintendence   47 

E-25.                    Inspecting   and   Patrolling 47 

E-2G  to  E-27.   Sub-station  Labor  and  Expenses 47 

E-28.                   General  Labor  and  Supplies 47 

E-29  to  E-30.  Repairs  to  Transmission  System 47 

E-31  to  E-33.  Repairs  to  Sub-station  Buildings  and  Equipment 48 

CLASS  C. 
E-24  to  E-33.  Transmission  Expenses  and  Repairs  to  Capital 47,48 

Distribution    Expenses. 

CLASS  A. 

E-34.  Superintendence    48 

E  :;.".  Sub-station  Labor 48 

E-36.  Sub-station  Supplies  and  Expenses 49 

E-37.   Storage  Battery  Labor 49 

E-3S.  Storage  Battery  Supplies  and  Expenses 49 

E-39.  Setting  and  Removing  Transformers  and  Meters 49 

E-40.  Inspecting  and   Patrolling 49 

E-41.  Electric  Meter  Operations 49 

E-42.  Commercial  Arc  Labor 49 

E-43.  Commercial  Arc  Supplies  and  Repairs 

E-44.  Commercial  Incandescent  Installation  and  Renewals 50 

K  -4.">.   Inspection  and  Repairs  of  Consumers'  Installations 50 

E-46.  Municipal  Street  Arc  Labor 50 

E-47.   Municipal  Street  Arc  Supplies 50 

K   4V   General  Labor  and  Supplies 50 

E-^9.  Repairs  to  Sub-station  Buildings  and  General  Structures -  50 

E-50.  Repairs  to  Sub-station  Equipment — 

E-51.  Repairs  to  Overhead  Distribution  System ---  51 

E~."">2.   Repairs  to  Underground  Distribution  System 51 

E-53.  Repairs  to  Line  Transformers  and  Devices 51 

E-54.  Repairs  to  Electric  Services 

E-55.  Repairs  to  Electric  Meters -  52 

E-56.  Repairs  to  Municipal  Street  Lighting  System —                              52 

E-57.  Repairs  to  Commercial  Arc  Lamps 52 


<)S  CLASSIFICATION'   OK   ACCOT.VTS.   KLKCTHIC   CoKl'OKATTOXS. 

1  'ACK. 

!•]  ."iS.   Repairs   in    Installations  on   Consumers'    Premises.    _    r>'2 

E -59.   Repairs  to  Miscellaneous  Distribution  Equipment 5:1 

CLASS  B. 

E-34.                    Superintendence 48 

E-35  to  E-36.  Sub-station   Labor   and    Supplies 48,49 

E-37  to  E-38.  -Storage  Battery   Labor  and    Supplies 49 

E-39.                    Setting  and  Removing  Transformers  and  .Motors 49 

E-40.                    Inspecting   and    Patrolling 49 

E-41.                    Electric  Meter  Operations 49 

E-42  to  E-45.  Commercial   Lamp   Labor  and  Expenses 49,  50 

E-4G  to  E-47.  Municipal  Labor  and  Expenses 50 

E-48.                    General  Labor  and  Supplies 50 

E-49  to  E-50.  Repairs  to  Sub-station  Buildings  and  Equipment 50.51 

E-51  to  E-59.  Repairs  to  Distribution   System 51.  52.  5:; 

CLASS  C. 
E-34  to  E-59.  Distribution  Expenses  and  Repairs  to  Capital___48,  49,  50.  51.  52.  5.", 

Commercial  Expenses. 

CLASS  A. 

E-60.   New  Business  Expenses 53 

E-61.  Free  Installation   Expenses 53 

E-62.  Commercial  Department  Salaries  and  Expenses 53 

E-63.  Commercial  Department  Indexing 53 

E-64.  Commercial  Department  Collections 54 

E-65.  Miscellaneous  Commercial   Expenses 54 

CLASS  B. 

E-GO  to  E-G1.  Promotion    5.", 

E-<J2  to  E-G5.  Commercial  Department  Supplies  and  Expenses 53.  54 

CLASS  C. 
E-GO  to  E-65.  Commercial  Department  Labor.  Supplies  and  Expenses 53.  54 

General  and   Miscellaneous  Expenses. 
CLASS  A. 

E-66.  Salaries   of  General   Officers ,_  54 

E-67.   Salaries  of  General   Office  Clerks 54 

E— 68.  Miscellaneous  General  Office  Supplies  and  Expenses 54 

E-69.  Law  Expenses — General 54 

E-70.  Railroad  Commission  Expenses 55 

E-71.  Injuries   and   Damages 55 

E— 72.  Relief  Department  and  Expenses 55 

E-73.  Electric  Franchise  Requirements 5G 

E-74.  Other  General  Expenses - 5G 

E— 75.  Insurance    •"><> 

E-76.  Repairs  to  General   Structures 5G 

E-77.  Repairs  to  General  Equipment — Office  Equipment -  57 

E-78.  Repairs  to  General  Equipment — Shop  Equipment -  57 

K  7!>.  Repairs  to  General  Equipment — Store  Equipment 57 

E-80.  Repairs  to  General  Equipment — Stable  and  Garage  Equipment 57 

E-81.  Repairs  to  General  Equipment — Miscellaneous —  57 

E-82.  Repairs  to  Telephone  Lines 57 

E-83.  Repairs  to  Roads,  Trestles  and  Bridge                             58 

E-84.  Electric   Expenses   Transferred — Cr 58 

E-85.  Joint  Operating  Expenses — Cr -  58 

E-86.  Undistributed  Adjustments — Balances 

E— 87.  Extraordinary  Repairs 58 

E-88.  Repairs  Charged  to  Reserve— Cr 59 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 


CLASSIFICATION  OF  A 


69 


CLASS  B.  A      000013677      0  PAGE. 

E-66  to  E-GS.   Salaries  and  Expenses  of  General  Officers ."H 

E-G9.                   Law  Expenses — General 54 

E-70.                   Railroad  Commission  Expenses 55 

E-71.                    Injuries  and  Damages 55 

E-72.                   Relief  Department  and  Expenses 55 

E-73.                   Electric  Franchise  Requirements 56 

E-74.                   Other  General  Expenses 56 

E-75.                   Insurance 56 

E-76  to  E-S3.  Repairs  to  Miscellaneous  Equipment 56,57,58 

E-84.                   Electric  Expenses  Transferred— Cr 58 

E-85.                   Joint  Operating  Expenses — Cr 58 

E-86.                    Undistributed  Adjustments — Balances 58 

E-87.                    Extraordinary   Repairs   58 

E-88.                   Repairs  Charged  to  Reserve — Cr 59 

CLASS  C. 

E-66  to  E-6S.  Salaries  and  Expenses  of  General  Officers 54 

E-69  to  E-76.  Miscellaneous  General  Expenses 54,  55,  56 

E-77  to  E-86.  Miscellaneous  General  Repairs 57,  58 

E-87  to  E-90.  Other  Expenses 58,59 

Other   Expenses. 

CLASS  A. 

E-£9.  By-product  Expense 59 

E-90.  Steam   Sales   Expense 59 

CLASS  B. 

E-89.  By-product  Expense 59 

E-90.  Steam  Sales  Expense 59 

Taxes. 

CLASS  A. 

E-91.  Taxes  59 

CLASS  B. 

E-91.  Taxes  59 

CLASS  C. 

E-91.  Taxes  59 

Amortization  of  General  Capital. 

CLASS  A. 

E-92.  Amortization  of  Franchises  and  Patents 59 

E-93.  Depreciation  of  Plant  and  Equipment 60 

CLASS  B. 
E-92  to  E-93.  Depreciation,  etc. 59,  60 

CLASS  C. 
E-92  to  E-93.  Depreciation,  etc. 59,  60 

CLEARING  ACCOUNTS. 

1.  Shop  Expense 60 

2.  Stable  and  Garage  Expense 60 

3.  Tool  Expense 61 

4.  Supply  Expense 61 

5.  Engineering  Expense 61 

6.  Plant  Supervision  Expense 61 


